International Comparative Study On Economic Development

Economic development is influenced by many factors. A very important aspect is government’s behavior. For weather the Government should intervene the market as well as the questions of how to intervene the market, economists have proposed two concept of the "two hands"-"invisible hand" and the "visible hand", for example:market spontaneous role and government intervention. Throughout the economic history, these two "hands" sometimes alternately and sometimes simultaneously. In practical terms, whether the government intervene the market and a different understanding of how to intervene in the market also led to differences in the pace of economic development levels. So researcher whether government should intervene the market and how to intervene in the market is necessary.Government actions can be divided into "positive" and "negative", the former usually take action to correct market or promote economic development; while the latter believe that the market’s spontaneous role, usually only minimum the intervention on the market. Through the study of the behavior of both the government, we find there is a lot of common in establishing and maintaining market order, the macro-control, the provision of public goods and services, and to achieve social justice. There are considerable differences in the different national government behavior, that’s due to the different of process of modernization, culture, history and politics. In accordance with the purpose of government intervention in the economy, government action can be divided into:Catch-up government with planned economic catch, fair and well-being for the purpose of social welfare-oriented government, as close to the perfectly competitive market for the purpose of free competition-oriented government.There are many catch-up governments, the represent of that are the government of Japan, India and some Latin American countries. A comparative study of the intervention and the effect of this government find, the catching-up government is good at economic growth, the upgrading of the industrial structure and improving living standards and have made some progress, but the effect is quite different. Overall, all three governments have made great achievements, but after a period of growth after experiencing economic crisis, the Government of Japan and Latin America in the face of economic stagnation and recession in the post-crisis, due to the timely adjustment of the government action, India government intervention model to maintain economic development in the post-crisis. Germany and France are the typical social welfare-oriented government. The goal of their intervention in the economy is similar, but it means have a huge difference. German government advocating free competition and economic order, and pay more attention to institution building; The French government tend to the economic plan and established a large number of state-owned enterprises. The comparative study found that in long term, indirect intervention in the market system construction is better than the more direct effects of the economic plan. The implementation of large-scale intervention by the U.S. government in the period of the "Great Depression" on the economy turned to t the economic plan, then the market spontaneously adjust. This makes the economy more dynamic, but there are also some problems of Social Security, and the gap between the rich and the poor. So in some specific areas, government intervention is essential.Found by the horizontal comparison study of three types of government:the different forms of government action makes economic development shows different characteristics; In the long term, although the government action is difference, but there is a trend that the government action trend to combine the intervention and the market mechanisms; selected in accordance with the Government’s objective of government behavior patterns, and to adapt to changes in the internal and external environment.Currently, China is facing a critical transition period. Government attitudes toward the market and intervention directly determine the future direction of the Chinese economy. Although in the past the government actively intervene in China has made remarkable achievements in economic development, but it also brought a huge risk. And as the environment changes, the intervention of the past have been unable to continue to produce good results. This requires the Chinese government to change intervention in a timely manner in order to maintain a sustained economic development...