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On the Relation of the North Paradox, Institutional Change and the Local Government’s Competition Behavior

Author: XuZuoHua
Tutor: ChengBaoPing
School: Wuhan University
Course: Industrial Economics
Keywords: The Douglas · C · Northrop Northrop paradox Institutional Change Local government Institutional innovation
CLC: F121
Type: Master's thesis
Year: 2005
Downloads: 615
Quote: 2
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Abstract


Northrop paradox \\In accordance with the logic of the system of innovation theory, this contradiction at the National conflicting dual purpose: first, to define the formation of the structure of property rights, the basic rules of competition and cooperation in factor and product markets defined ownership structure; property rights within the framework of the structure through the output of national public goods, the provision of public supply, reduce the transaction costs of the formation of the contract, in order to maximize the social output, thereby increasing the state's tax. In this way, maximize the ruler and its group the monopoly rents ownership structure with lower transaction costs, promote economic growth and efficiency system, there is a protracted conflict. The of domestic theoretical circles \Scholars of different institutional change say. Among them, about Lin Yifu the way of institutional change theory is considered to be the basis of the classical theory. Lin Yifu (1990) is divided into institutional change induced institutional change and mandatory institutional change. Not difficult to find complex system of government and bureaucratic structure from Northrop theory of the state to Lin Yifu mandatory institutional change theory, in real life has been simplified to become a ruler (or a few people with the consistency of preferences rule by collective). Or that they are not separated between the hierarchy of the government and local governments lateral area segmentation and rights taking into account the theoretical assumptions, it is difficult to truly describe the present stage of the process of institutional change. China's institutional change is mandatory, however, the arrangement of the new system is expanded along the idea of ??decentralization. With the decentralization of none other accelerated reform, local government and the main micro enterprises maximize the benefits motivation and behavior, but also tend to use the decentralization of decision-making power to capture potential system gains, institutional innovation, the resulting \on \Yang Rui (1998) recognize the characteristics of China's institutional change, a deep understanding of the induced institutional change and the mandatory regime change based on the theory introduced the concept of intermediate diffusion Institutional Change in the way, creativity can crack \

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CLC: > Economic > The world economic profiles,economic history,economic geography > China's economy > Socio-economic structure and institutional
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