The Transaction Efficiency's Estimation and International Comparison: An Indicator System

Transaction efficiency or transaction cost can affect economic growth through market extension and evolvement of division of labor. The paper has distinguished technical transaction cost and institutional transaction cost, and given an indicator system of general transaction efficiency. Research results show that general transaction efficiency has positive correlation with economic growth from the experience data, and transaction efficiency or transaction cost has decided economic development remarkably. The above viewpoints have important meanings for China and other developing countries.