The Influences Of Traditional Customs On The Market Economy

In the field of economics, western major economists have long enough focused on economic factors while turned a blind eye to the study of informal institutions such as ethics, morality and ideology. But since the 1950s, most European and American economists have come to realize that, in the process of economic development and stagnation, the influence of non-economic factors can not be ignored. This paper discusses studies of formal and informal institutions made by economists at home and abroad, as well as their features and relationships. Particularly, detailed analyses of customs in informal institutions are given, including its definition, features, functions and classification. It points out that, as an informal institution, customs plays an important role in the development of market economy, exerting to some extent more fundamental and lasting influence on market economy than formal institutions. Taking customs in belief, in debit and credit, and in industrial organization as examples, its positive and negative effects on market economy is explored. By the way of empirical analysis, after the adoption of literature analysis and comparative analysis, on-site investigation has been made about traditions in Qianbailu village in Weihai, Shandong province, which further proves the conclusion of this paper. In particular, the influences of customs on market economy are mainly stated as follows:1. Customs in industrial organization promote the formation of guild and its regulations. Its influences on the market economy are explored.2. The customs in the debit and credit promote the formation of nongovernmental market in fund-raising. The influences of the nongovernmental fund-raising are explored.3. Customs in belief and the influences on the market economy are explored.By studying the influences of customs on market economy, it is hoped that, for a better service for economy, a better understanding of its functions can be gained; the construction of customs can be strengthened and formal institutions and institutional systems can be more effectively arranged.