Analysis Of The Economics Of China's Administrative Costs

It is well known that administrative cost is a common difficult issue in modern public management. Increasing administrative cost has been a general trend. In this regard, effective management and cost-control have been pursued in the governmental reform. Therefore, in the various periods and different countries, scholars analyze such important intersected theories from a wide and long-term side, and accumulate various schools and views. Experts in the west nations widely discussed the theory of the organ of governments and system choice, showing strong ideas of saving cost. Nowadays, the governments in the west pay more attention to controlling administrative cost, and various theories and practice come into being like market-based public administrative doctrine, Post-bureaucracy model, enterprise-like government, and specific methodology also are innovated. All require a government increasingly consider its own behavior in terms of economic points, introduce the ideas and measures of business management, control administrative cost, optimize social resources and embody public interest, so as to establish an ideal standardized government that is democratic, efficient and low administrative cost.The report of the Sixteenth National Congress of the CPC states that China should further change the functions of the government, improvethe methods of management, introduce e-government, uplift administrative efficiency and reduce costs so as to form an administrative system featuring standardized behaviors, coordinated operation, fairness and transparency, honesty and high efficiency. It is the first time that the statement of reducing administrative costs appears in the literature of CPC and government. And this is a comprehensive target and concerns all other factors. In the process of restructuring government, China faces very complicated systems factors and special administrative culture. Thus, in order to establish a administrative cost management and controlling system featuring openness and adjustment, China should optimize social resources via various and gradual methods. These tasks now become the top priority of different levels of governments. The purpose of this paper is to learn about the history and current specific conditions, make a comprehensive understanding and research, and abstract some comments and suggestions featuring theoretical and practical values. To some extent, studying administrative cost in China plays a very important role in establishing and improving government restructuring, facing the challenges of times and meeting the demands of environments.The authors construct the paper with data and personal experience. The features of the paper are as follows. First is the combination of positive analysis and experience analysis. The author combine macro value analysis, normative analysis and micro personal analysis, thus thepaper can reflect the times and current situation. The second is the combination of reference and innovation. In the literature, the author borrows and improves traditional cost-management theory on the basis of China's practice. The third is the combination of specific analysis and comprehensive research. Studying the issue of administrative cost is a comprehensive project, the author analyze it in the form of "unit" and "overall" pictures, thus the readers can make a further understanding on this issue. The final feature is the combination of nature analysis and econometric analysis. The author not only describes the nature of administrative cost, but analyzes its econometric model. This implies the innovation in research, and makes the paper more logic.