The Research Pattern of NIE from the Perspectives of Transaction Cost and Contract

Along with the development of market economy reform in China, a series of problems are emerging concerning contract design, institutional arrangement and organization restructure. Therefore, it is of crucial importance to improve the efficiency of resource allocation and reduce the transaction costs so as to ensure the success of reform. The analyses of transaction cost and contract has brought economic studies further into the real world and nonmarket fields, enhanced the explanatory power of economic theories on the existing economic organizations and economic phenomena, and paved the way for the development of management theories, particularly the organization theories.