Specialization and Economic Organization: A New Classical Microeconomic Framework

Author: Yang Xiaokai
Publisher:
Publish Date: 2000-01-01
Features: This book is set during China's period of economic transition. In the process of shifting from a planned economy to a market economy, we have encountered numerous contradictions and problems. How to design a sound institutional framework, how to manage the triangular relationship between the state, the market, and enterprises, and how to address information and incentive issues are the most critical fundamental problems China must resolve. The essence of these issues lies in how to save on institutional costs. Once this is resolved, China will embark on a path of institutional innovation characterized by low transaction costs, a well-functioning market mechanism, sensitive information, and rapid market expansion. This book highlights the significant role economics plays in enhancing the productive capacity of society. From the feasibility study of a small project to the formulation of national economic policies or the creation of international trade rules, economic theories are extensively applied as guiding principles. Without economics, markets can still operate, but their efficiency would be greatly reduced, and disputes would increase significantly. Economics has made substantial contributions to human progress.