Comparing the Relationship between Firm, Market and Government In East Asia with Those in the West

Firm, market and government are substitutive for each other at the micro level,and are complementary for each other at the micro level. This paper distinguishes between the principle of importance and necessity when we define the line between government intervention and the spontaneous operation of firm and market. The author argues that, when comparing the degree of the intervention between the East Asia and the Western countries, we generally deduce that the government intervention in the East are more common than those in the Western countries. But according to some data index, the East Asian government intervention seems less than the Western. The author gives some explanation for the paradox and thinks that it is owing to the different means of government intervention that the paradox emerges.