The Empirical Study Of Transaction Costs,Transaction Efficiency And Economic Growth

This paper measures transaction costs and transaction efficiency of Liaoning Province inorder to test whether Liaoning accords with the general result of Wallis and North and alsoevaluate the Liaoning’s transformation performance in compare with the others. In addition, thispaper studies the relationship of transaction costs, transaction efficiency and economic growthbased on the gained results.It is an empirical way to study the relationship of transaction costs, transaction efficiencyand economic growth and to measure Liaoning’s efficiency by factor analysis. The contents andresults of this paper is as follows:First of all, this paper makes a model of transaction costs, tansaction efficiency andeconomic growth, which has an explanation to the reality of a self-sufficient and slowlydeveloping economic society for a long time in the human history and leads to economicdeveloping and transaction costs increasing as transaction efficiency is increasing and the laborspecialization and division are constantly deepening..Second, this paper measures Liaoning’s transaction costs from1978and has several results.The ratio of transaction costs and GDP in Liaoning province is increasing from12.75%in1978to22.40%in2008, the ratios of the first and second industries’ is low but the third industry’stransaction costs determines the trend of the whole transaction costs. In addition, we find thatthere are a long-term equilibrium between transaction costs and GDP from empirical study, andthe increase of transaction costs can improve economic growth not only in the short time but alsoin the long time. However, economic growth can just improve transaction costs in the short time.Third, it explains it in both of the measuring statement and the differences of the industrydevelopments between Liaoning province and China that the Liaoning’s ratio is lower than theChinese ratio of transaction costsand GDP. And we find that the difference of industry structureis a more important factor than the measuring statement., that the serving function of the first andsecond industries in Liaoning province is lower than Chinese and that the serving function of thethird industry in Liaoning need to be further improving.Fourth, we measure the transaction efficiency of31provinces in the method of FactorAnalysis in order to ensure the level of Liaoning province in China which could supplement forthe former and provide empirically for the policies. We find that it can obviously promote economic growth for the protection of property rights, the strengthening of infrastructure, theconvenience of information gained and the improvement of education, but not for the tax cuts,the strengthening of labor liquidity and the lowering of local protection. In addition, we find thatit is better to explain economic growth and regional disparity than total production factor.Finally, this paper puts forward relevant policies to improve transaction efficiency andpromote economic growth. It is not only improving economic growth but also reducing regionaldisparity and promoting the optimized allocation of resources for the transition of governmentfunction, the strengthening of infrastructure, the development of communication technology andthe increase of education investment.