On Government Incentive Regulation

Author: Guo Zhibin
Publisher:
Publish Date: 2002-01-01
Features: This book explores incentive regulation and the relationship between the government and state-owned enterprises from the perspective of administrative law, aiming to correctly understand the role and position of the Chinese government in building a socialist market economy system. Since both market failure and government failure exist simultaneously, government regulation has both advantages and disadvantages. Therefore, it is necessary to reform government regulation and establish incentive regulation to correct market failure and prevent government failure. Currently, in the critical phase of China's state-owned enterprise reform, the construction and improvement of administrative legal systems related to the government-enterprise relationship should also be based on the theoretical foundation of modern administrative law. By creating and perfecting restraint and incentive mechanisms, it can both restrain the irrational expansion of the government's economic functions and prevent state-owned enterprises from abusing market power. It should also incentivize the government to intervene in the market rationally and encourage state-owned enterprises to actively participate in and influence government decision-making, thereby establishing a positive and interactive government-enterprise relationship in administrative law. On this basis, it should also balance the public and profit-seeking nature of state-owned enterprises, achieve the behavioral goals of state-owned enterprises, and realize a win-win situation between administrative efficiency and enterprise efficiency, as well as between social public interest and enterprise profits. Since both government failure and market failure exist simultaneously, it is necessary to reform government regulation and establish incentive regulation to correct market failure and prevent government failure.
This book consists of an introduction, main body, and conclusion. In the main body, the author primarily explores incentive regulation and the relationship between the government and state-owned enterprises from four aspects: the macro background of government regulation reform (state-owned enterprise reform); a review of traditional government regulation theory; incentive regulation: a new path for reconstructing the government-enterprise relationship; and an empirical analysis of incentive regulation for state-owned enterprises. Through these discussions, the author examines incentive regulation and the government-enterprise relationship, thereby correctly understanding the role and position of the Chinese government in building a socialist market economy system.