【IMI Working Paper No. 1502 [EN]】National Characteristics, Government-Market Relationship and Development of Financial System

2015-01-02 IMI

【Abstract】 This study seeks to determine an effective boundary between government and market in light of modern financial theories. According to the findings of this paper, the relationship between government and market must be conceived of asunder the “continuous spectrum of change” resulting from economic development. In practice, an effective frontier between government and market not only transforms continuously with the process of economic development but also demonstrates significant contrasts internationally according to the different national characteristics existing in each country. Determining a frontier between government and market requires that the relationship between the two be embedded into a broader set of institutional environmental constraints that incorporate consideration of the dynamic processes and mechanisms of economic development. The key issue is that government and market act with regard to the principle of comparative advantage as they play their respective roles. 【Keywords】 Government, Market, National Characteristics 【Authors】 Ma Yong: Research fellow of IMI, School of Finance, Renmin University of China Chen Yulu: Chairman of IMI Academic Committee, President of Renmin University of China 【IMI Working Paper No. 1502 [EN]】National Characteristics, Government-Market Relationship and Development of Financial System

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【IMI Working Paper No. 1502 [EN]】National Characteristics, Government-Market Relationship and Development of Financial System

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