An Analysis Of The Effect Of Market Distortions In The Period Of China's Institution Transition

The Western traditional distortions theories are generally believed that market distortion is caused by the market failure rather than the other factors. Therefore, this dissertation attempts to identify the mechanism of market distortions under different economic system and establish a more systematic theoretical framework. There will be extended the Western traditional distortions theories to analysis the causes of market distortions in the period of China's economic transition and the economic effects caused by the distortion.On the basis of comparing the different mechanism of market distortions under the Western market economy and China's planned economy, we propose specific forms of market distortions in the period of China's economic transition and analyze the economic effects caused by those distortion. Then our basic viewpoint is that the market distortions in the China's transition period are not caused by the market failure mostly, but by the direct intervention form the governments. Those market distortions would be caused a negative impact to all aspects of China's economic operation and will ultimately affect China's sustained economic growth.The dissertation elaborates from empirical analysis and theoretical analysis based on theoretical analysis, comparative analysis, econometric method. The main conclusions of this dissertation are as follows:(1) The distortions in China's transition period are not only caused by the market factors, but also by the non-market factors which exist in the process of the transition of China's planned economy toward a market economy, and the distortions caused by this non-market factors are the most important source of market distortiongs which exist in China's present economic operation.(2) Based on analysis of eonomic effeets caused by matket distortions from industrial structure imbalance, regional disparityand financia markets inefficient, the dissertation finds that the market distortions hindering the economic growth.(3) From the perspective of economic development, although the market distortions have a negative impact to the present of China's economic growth, this negative impact will be gradual elimination with the gradual deepening of market reform and the reform of China's economic system. At the same time, with the gradual elimination of market distortions which exixt in the market, the efficiency of the allocation of resources is gradually improving, and the hindering effect to the economic development caused by market distortions is gradually reduced.The theoretical contributions and realistic significance in this dissertation are as fellows:(1) Based on the overall analysis of traditional distortions theories and under the practical background of China's economic transition, we do an intensive study for the internal mechanism and manifestations of the market distortions in China's transition period. To a certain extent, this study complements and enriches the Western traditional distortions theories.(2) By putting all the factors which caused market distortion into an unified framework, this paper focuse on the quantitive analysis of market distortion in this period. From this, we can examine the process of China's economic transition form another sides and reveal the problems form the process of China's economic system reform. This method is different form the traditional research which use the positive view to examine the China's marketing process.(3) During the analysis of China's regional economic disparities, this dissertation finds that in the case of market distortions, the free movement of production factors is limited not only in the inter-regional but also in the inter-industry, which makes the internal mechanism of economic convergence can not play a regulatory role between regionals in China.(4) By using the econometric method to investigate the eonomic effeets caused by market distortions and using the empirical approach to test the results, this paper make up for the deficiency of the exist studies, which pay more attention to the quantitive analysis.