The Research Of The Rent-seeking Behavior In Government Procurement In China County

Government procurement is playing a significant role in national economy. It isalso one of the important branch of the national finical expenditure management.Firstly, the scale of government procurement is very large in China, which makes itpossible to save finical funds effectively in order to reduce the transaction costs.Secondly, the behavior of government procurement can be exercised under theprotection of the state power. However, during this period, there is competition ofinterests between parties. Therefore, the frequency of occurrence of the rent-seekingbehavior in government procurement continuously increased, resulting in a huge lossof state funds. In recent years, with the expansion of government procurement scale, ifthe government cannot effectively restrain the rent-seeking behavior during theprocurement process, it will inevitably leads to serious waste of national publicproperty and resources. It will not only affect the government’s image in the minds ofour citizens, but also seriously restrict the sustainable development of the marketeconomy.The rent-seeking behavior is not able to create value by itself but obtain directlyunproductive profit. It transferred the redistribution of interests from the workers tonon-workers. Rent-seeking behavior directly has impact on the principle of faircompetition in the market economy, which not only leads to the loss of state funds,but also corrupted the social atmosphere, and result in very bad effect. So, we mustanalyze the environment and reasons of rent-seeking behavior produces in order tofind effective measures to inhibit the occurrence of rent-seeking behavior. The paper elaborates the related concepts of government procurement andrent-seeking, analyzes background and reasons leading to government procurementand rent-seeking behavior. The main reason that government procurement andrent-seeking behavior occurs lying in many aspects, such as laws and regulations arenot well organized and excessive government intervention, the differences ofprincipal-agent target, and lacking of supervision. We can draw on the experience ofwestern countries in government procurement, improve the government procurementlaws and regulations, standardize the process of government procurementmanagement, strengthen the construction of procurement staff and improve thegovernment procurement supervisory mechanism in order to restrain rent-seekingbehavior in government procurement.