A Transaction Costs Based View On Inclusive Development And Its Effect On Social Satisfaction

By using exploratory case study and statistical analysis this paper investigates those questions:(1) The concept of inclusive development? (2) The mechanism of inclusiveness improvement and the measurement inclusiveness? (3) The determinating rule of inclusiveness? (4)The role of transaction costs in inclusive development? (5) How to reduce transaction costs? (6) Why transaction costs reduction will improve inclusiveness cognition? (7) The relationship between inclusiveness cognition and social satisfaction?In the research of the concept of inclusive development, inclusive development has been defined as eliminate the deprivation and social exclusion of vulnerable group, to obtain equality opportunity and fair participation for all kinds of group, and make those people able to obtain reasonable contribution and output sharing for the development of economy.In the research of the mechanism of inclusiveness improvement and the measurement inclusiveness. This paper propose three theoretic methods in improving inclusiveness, meanly barrier reduction, capability building and institution innovation. Then based on one round of semi-open-ended questionnaire, one round of exploratory factor analysis and one round of confirm factor analysis the research develop the scale of inclusiveness cognition.In the research of determinating rule of inclusiveness judgement, the paper concluded following 7 rules of inclusiveness judgement:(1)Freewill in competition participation. (2) Ampleness in opportunity resources. (3)The consistence of the rule. (4) Ethnicness of the rule. (5) Amendable of the rule. (6) Value proveness of the sharing. (7) Shareholder taken into account during sharing. Data analysis based on a third round of data collection verify our conclusion.For the research of the role of transaction costs in inclusive development. This paper briefly introduced the effect of transaction costs for barriers formation, capacity accumulation and institutional building. Further, it pointed out that in the environment which a government was the development environment constructor, through reasonable construction system of high or low transaction costs environment, it would promote the society's inclusive development effectively. In this process, (1)assets specificity, (2)the trade-off of individual interests and public interests, (3)the cost of public resources, (4)the uncertainty of individual's income, are the basic criteria for the construct of economic production system, which means that the controlling parts changing the efficiency of unit economic transaction cost within the system is the basic rule to promote inclusive development.In research of how to reduce transaction costs, this paper presents certain measurement in reducing transaction costs. Based on the material collected during 2009 to 2011's field study, we concluded 4 factors that forms transaction costs a from exploratory case study, meanly information symmetry, trust atmosphere, asset specificity and transaction frequency, and further research draws 3 contexts that may affect those factors, meanly regional character, product character and enterprise character. The model gives an theoretic guidenance of maximam the usage efficiency of transaction costs.In research of why reduction of transaction cost can improve inclusiveness, the paper incorporate transaction costs theory into inclusive development theory, and the rule of high pay high pay off be the basic rule of improve individual transaction costs. Based on exploratory case study of manufacturing firms, research indentify 4 factors that forms transaction costs and 3 factors that constitutes inclusiveness cognition, then based on information symmetry idea, bargain power idea, management cognition theory, social exchange theory, social network theory and biological evolution theory the paper explains how change of transaction costs will affect the change of objective surrounding's inclusiveness, then based on allocation preferencial theory and Activation theory the paper explains how objective surrounding's inclusiveness will affect the perceptive inclusiveness. The statistical analysis based on the sample collected from manufacturing and service based firms confirms our founding and theory, also improves the external validity of our theory.In research of the relationship between inclusiveness and social satisfaction. Based on activation theory, goal setting theory, relative deprivation theory, referential target theory the paper explains how inclusiveness perception will affect social satisfaction, how opportunity inclusiveness, participation inclusiveness will affect sharing inclusiveness and behavior differently to different income groups. The statistical analysis show the feasibility of explaining the relationship based on certain theory, but for different income groups, they have no significant differences in the change effect of opportunity and participation inclusiveness on social satisfaction, which means activation theory, relative deprivation theory, referential target theory is not able to explain this similarity, and for activation theory, relative deprivation theory, referential target theory it is applyable in explaining the difference of effect for the relationship between sharing inclusiveness and social inclusiveness. Further analysis shows activation theory, structural equation theory, referential target theory is able to explain the difference in the relationship between opportunity, participation inclusiveness and sharing inclusiveness for different income groups. Based on those findings, the paper concluded that, for different income groups, they have no differences in demanding the right of participation and opportunity.The research, incorporating transaction costs theory into inclusive development theory, help us to understand how inclusiveness can be improved, the research also makes us to understand how the government measurement will affect ones inclusiveness perception and social satisfaction and by which channel. The transaction costs based government rule, measurement and the inclusiveness judgment criteria will obvious help us in further research as well as the building of certain social system.