The Measurement Of Macro-Transaction Costs Of China From 1991 To 2013 And Analysis Of The Results

In theory,transaction cost is the core concept of New Institutional Economics.Admitting that there are transaction costs is where the basic difference lies in between new institutional economics and western neoclassical economics.Due to the fact that transaction cost is an important variable in the process of economic activities,and from a historical point of view,transaction cost,as well as transformation costs,is the limiting factor of economic growth(Wallis and North,1986),so the transaction cost is very important for us to understand economic performance.Specifically,the transaction cost not only affects the contract arrangement of production,but also affects the market in the production and the amount,as well as types of goods and services(Ning Wang,2003).We can even say that transaction cost fundamentally determines what kinds of economic activities and market trade will happen,what types of organizations will survive,or which one or which group will thrive in specific markets.(Alexandra Benham and Lee Benham,2004).The concept of the transaction costs in transaction sectors is first raised by North and Wallis(1986).It refers to that part in the market transaction cost,the concrete content includes enterprises,trade intermediary organizations of transaction costs as well as the state in order to maintain the economic order,costs of providing public services.The market transaction costs refer to the observable part of the transaction cost,which size can reflect economies trading service level.Wallis and North published Measuring the Transaction sectors in American Economy:1870-1970,which was for the first time in the U.S.economy transaction costs were measured.All economic activities are divided into the trading activities(transaction activities)and production activities(transformation activities).They found that the propotion of comparative transaction costs increased from 25%in 1870 to about 50%in 1970.The methods used by Wallis and North to measure the trading sector in the U.S.economy in 1970,initiated the study of transaction cost measure.Since then many economists measure,as well as studying the idea of transaction costs,making the development or application.Since 1978,China's economic system reform has brought rapid growth for over 30 years,which is because that the system reform managed to reduce the transaction cost.Therefore,China's economic growth can also be explained by continuously lowering transaction costs.But empirical research at home and abroad are suggested;A country's economy is more developed,the deepening of social division of labor and the scope enlargement market results in the transaction costs of absolute or relative proportion will be more and more big.So,since China's reform and opening up,especially over the past twenty years,are China's rapid economic growth and the change of transaction costs in consistence with the existing research results?What are the main factors influencing the Chinese transaction cost change?It is worth further discussing these questions,but the premise of answering these questions is to be able to accurately measure the amount of transaction costs or able to grasp the dynamic changing trend of relative transaction coasts.