What Is a Restricted Market?
The "restricted market model" is a unique type of market system proposed by Regus when analyzing the characteristics of a transitional society.
Restricted market model
Right!
- Chinese name
- Restricted market model
- proposer
- Regus
- Defining attributes
- Market Institution Type
- Background
- Transition society
- The "restricted market model" is a unique type of market system proposed by Regus when analyzing the characteristics of a transitional society.
- The restricted market model is mainly characterized by "price indeterminacy", that is, in a society where the economic structure has been constructed but is not fully marketized, in addition to market factors, prices must be received The influence of non-market factors such as the social status, reputation, and closeness of buyers and sellers.
- At present, this limited market model still exists in China, mainly in two aspects: one is the dual-track price system, that is, the original market price of most commodities, but a small amount of so-called basic materials, basic energy and products related to national economy and people's livelihood are still implemented National pricing. This dual-track system makes the government's economic management functions, management methods, and means show a dual character, that is, it is necessary to maintain both the economic management functions that are compatible with the market economy system and the economic management system formed in the traditional planned economic system. The second is the fragmentation of the national market. That is, the national market system is not yet unified. The main reasons are the existence of "local protectionism" and "principal economy". In order to protect the local economic development, local governments artificially set up various administrative barriers, or through disguised tax and fee policies, have relatively increased the prices and costs of foreign products. This makes it impossible to determine the price of commodities in full accordance with market rules. At the same time, this market limitation will have an impact on the local government, causing the local government to assume many functions that should not be undertaken and fail to achieve the goal of function conversion. This ultimately hindered the reform process of the entire local administrative system. At the same time, the fragmentation of the market will also have a serious negative impact on the central government's socio-economic management functions, especially the effective exercise of the macro-economic management functions that complement the market economy system, which in turn hinders the smooth transition of the administrative system. With the further improvement of China's socialist market economy system, China's administrative management system will also be further improved and developed.
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