To Explore Traditional Culture Industrialization And Market Failure Problem

In the reform of the socialistic market economic system with Chinesecharacteristics, culture as a special product did not escape the impact of marketeconomic system to it. In particular, since the1990s cultural industries have beenmore rapid development in China. Under the trend of culture to walk the path ofindustrial development, as an important branch of culture, Chinese traditional culturecannot evade the industrialization of its own development.The reason why Chinese traditional culture is a very special social variables isthat it is not only the material, but also spiritual. Its material not only is thefoundation that it walks the road of industrial development, but demonstrates its hugesocial economic effects. Yet its spirit is mainly reflected in its social function. So, onthe one hand, the material of Chinese traditional culture let it embark on road ofindustrial development. On the other hand, heavy social value inherent in the spiritualof Chinese traditional culture is the root causes of market failure in the process ofindustrialization of Chinese traditional culture.In the process of industrial development of Chinese traditional culture，on theone hand, it promote the economic growth and the protection of Chinese traditionalculture. On the other hand, it had a lot of negative issues as well, such as China’sprecious intangible cultural heritage and intangible cultural heritage is facing thethreat of damage and even extinct under the impact of industrialization. Anotherexample is that tickets of tourism industry with traditional culture-based is generallyhigher, and the development of the tourism industry is also very uneven in the wholecountry. In the antique and auction markets, because of the information asymmetryproblem, there are also a lot of fakes flooded and prices were inflated. So the fact likethat cannot be enumerated. These specific negative facts all is the result of marketfailure when traditional Chinese culture is in the process of industrializationdevelopment. About everything, where there is fruit there must be cause. If explore the rootcauses of the negative issues that arise in the course of industrial development ofChinese traditional culture, there mainly are the following three aspects. First, sinceheavy social value of traditional culture makes it naturally have the public andexternal characteristics that have also led to lack of demand for traditional culturalmarket, market failure problems appear. Second, in China, the traditional culturalresources own by the state, which leads to a monopoly of traditional culturalresources, and such a monopoly is a direct result of the non-competitive in the pricingprocess of the traditional culture, so monopoly market failure problems appear. Third,in Chinese antique and auction markets, there is a serious asymmetric informationproblem, which is a direct result of the low efficiency of market allocation.For above these market failure problems, we should mainly solve them from twoaspects. On the one hand, we should resolve them by economic instruments. We maysolve the public and external market failure problems of the traditional culture by theapproach of integral development of resources bundled, and solve the monopolymarket failure problems of the traditional culture by reasonable pricing method. Onthe other hand, we should combine with an appropriate non-economic means thatmainly include four kinds of countermeasures. First, the Government should makescientific planning and layout for the development of traditional cultural resources.Second, a variety of capital operation system should be adopted with the introductionof private funds. Third, improve and strengthen the legal system. Fourth, promote theintegration of education and Chinese traditional culture. In summary, it is a big issuethat market failures be generated in the process of industrial development of Chinesetraditional culture, needs us to be further research.