Transition Of Government Intervention And Economic Performance

The reform and opening-up of China has already lasted more than 20 years. During the transition from the planned economy to the market economy, Chinese government trying to relax its intervention and to accelerate the process of advancing marketization are the main characters of the economic development. Meanwhile, the economists of China do not ignore the economic influence of government interventions either. But what they study is mainly the financial policy of Chinese Government, validity of monetary policy, performance of state-owned enterprise and the intervention on education, real estate etc concrete industries. And few people analyze the economic performance of different government interventions as a whole. So in this article we try to analyze the impact on total supply and demand of the behaviors of Chinese Government in the transformation period.This article divides four major parts altogether:In the first part we introduce the concrete meaning of government interference and recent domestic and international economists' relevant document surveys mainly. The researches about government intervention and it's economic performance have got new development and progress in the most recent 20 years, and the economists began to use the real example and analytical method of experience more.Second part introduces concretely U.S.A., Korea S and Latin American, the three representative countries and regions' government intervention, and draws experience and lesson from them.The third part is mainly to analyze empirically China's government intervention in the transformation period, and discuss emphatically the management policy of government's state-owned enterprise, public finance (tax) policy, manpower-capital investment policy and finance control policy the four government interference tools.In the last part we give an extended neoclassical growth model, and use time-series data of China economic transition. The results obtained from OLS estimation indicate that the government intervention has a positive impact on economic growth in general though some kind of intervention is insignificant orharmful.Real example analysis is the primary research approach of this text, and real example analysis relies mainly on the empirically analysis. Mainly enumerating the data, building the model of and analyzing the data with econometrical software show these, hi addition to, this article has also used the comparative method among the countries to analyze.Possible innovation of this text: First, I think that government intervention can be divided into two big classes under the socialist market economy condition of our country. One is the government's participating in directly the produce by controlling the state-owned enterprise, the second is that the government controls the market, concretely including the product market controls, the labor market controls and controls on the financial market. In this way, the government intervention is divided into four big classes and it is possible to analyze it with econometrical software.Second, this article regards the variables of government intervention as the factors that can influence economy efficiency, and then blend these variables into an extended neoclassical growth model. For example, Y= Atf(K,L) is the model, among them At=Aoegt, t is period, Ao is the efficiency of the base period, g is the external rate of economy increase . Suppose F(G) as the government intervention function , then the growth model including the variables of government intervention is Y t=AoegtF(G)f(K,L), which offers the productive function to government intervention.