Political Economy Research Report (2)

Author: Institute of Economics, Chinese Academy of Social Sciences
Publisher:
Publish Date: 2001-04-01
Features: Economic globalization is the globalization of markets, the globalization of capital. In the face of market failures and capital monopolies, government intervention is necessary. Especially for a developing transitional country like China, to effectively correct market distortions or market defects, it is essential to fully leverage the government's four major advantages in correcting market failures: the power of taxation, the power of prohibition, the power of punishment, and transaction costs.