Development of Western Government Regulation Theory and Its Inspiration for China

Government regulation began in the late 19th century,which aimed to correct the structural defects of market mechanism and market failures as well as to avoid the defects brought about by market economy to the whole society.Government regulation,however,the same as market would,would also fail.In retrospect,the researches on government regulation since the 20th century in the west,had formed the public interest theory of regulation,sectional interest theory of regulation,deregulation theory and incentive regulation theory.There are much of inspiration and reference of government regulation theory and practice in Western countries to the establishment of socialist market economy in China.