Dissertation
Dissertation > Economic > Fiscal, monetary > Finance, the state's financial > China's financial > Financial income and expenditure > Expenditure

Prevention and Treatment on Rent-seeking of Government Procurement in China

Author XuLiWen
Tutor ChengZuo
School Jiangxi University of Finance
Course Administration
Keywords government procurement rent-seeking prevention and treatment
CLC F812.45
Type Master's thesis
Year 2012
Downloads 536
Quotes 2
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As an important branch of central and local government fiscal expenditure management, government procurement practices play an important role in the national economy active. On the one side, because of the large scale of government procurement, its scale benefit can efficiently save finance capital, lower transaction costs, then improve the utilization ratio of government capital. On the other side, as an important way of managing social economy by using power, government procurement activities are done under the protection of government power. And its implementation process is also a gambling process of various complex relationship, especially full of all sorts of rent-seeking activity and corruption. In recent years, with the scale of government procurement has been increasing year by year, the rent-seeking activities also getting worse and worse. The state-owned assets and public spending will be caused more serious waste without effective supervision and management, and the government’s public credibility and ruling effect will be reduced.Rent-seeking behavior, is the unproductive activities of human’s seeking direct unproductive profit, therefore, rent-seeking behavior is a’negative sum-up game’with extremely high social transaction cost. The existence of rent-seeking causes great shock to the fair competition of the market economy environment, it not only causes the waste of social resource and low efficiency of economy, but takes bad moral climate and corruption in the society at the same time, the negative effects of social and economy will be produced. Therefore, it has the important theoretical and practical significance to deeply analyze the rent-seeking problem of government procurement and to discuss how to monitor and suppress the rent-seeking behavior of government procurement.This paper mainly divided into five parts:the first part is introduction, after introducing the research background and significance of this paper, it reviews some relevant theories of government procurement and rent-seeking through native and foreign documents. And according to the needs of the paper, it introduces several researching methods, then puts forward the emphases and difficulties and innovations of this paper.The second part analyzes the rent-seeking behavior of government procurement by economic method, including:government procurement related concepts, characteristics and role, analysis on rent-seeking behavior and its negative effects of government procurement. To do revenue-cost analysis of rent-seeking behavior by using economic method, to use game theory to analyze all parties of force, to introduce the the expression way and the realize path of rent-seeking behavior in detail, and to propose some general path of prevention and control.The third part analyzes the causes and approaches of rent-seeking on government procurement through some typical cases, especially the game behavior of government procurement based on the interests of all parties.The fourth part raises some ideas of prevention and treatment of rent-seeking on government procurement in China, such as:some laws and experience about anti rent-seeking of other countries and regions, and some ideas about the anti rent-seeking in China---to strengthen the education and training of purchasing persons; to set up and make perfect the government procurement related laws and regulations; to regulate the government procurement operation mechanism; to strengthen the enforcement of responsibility and supervision, etc, so as to effectively restrain the happen of rent-seeking on government procurement.The last part is a summary.This article begins from the government procurement and rent-seeking theories, makes an economic analysis on rent-seeking, then puts forward the path of prevention and treatment, the key point is how to prevent and control the rent-seeking behavior on government procurement.

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