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Research on Efficiency of Resource Allocation by Administrative Departments in China
 Author:Jiang Hong  
From:Yang Hua  Clicks:

The management system of China’s administrative departments is basically still government-dominated, and the functions and powers of some administrative departments involve various aspects of economic activities, such as, industry planning, administrative examination and approval, distribution of fiscal resources, manning quotas, etc. These administrative departments possess great power in control and allocation of various resources and rely mainly on administrative means rather than market mechanism in resource allocation. To a large extent, this equals to direct allocation of resources by administrative departments. Under the condition of insufficient constraint of constitutional framework, officials of administrative departments are likely to abuse power in their hands, thus leading to unreasonable allocation and much waste of limited resources. With the establishment of the system of market economy, this sort of highly centralized mode of resource allocation and supply is unable meet the demand of social development any more.

This research aims at making a thorough analysis of what sort of resources some competent administrative departments have monopolized, how these departments allocate these resources by making use of power in their hands, as well as the efficiency and results of this kind of allocation so as to give certain suggestions on institutional solutions and policy basis which will improve resource allocation in these fields.



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