Measuring Non-market Transaction Costs in Chinese Economy

This article is to construct an MIMIC model by employing the principles of SEM based on the current theoretical foundation, aiming at establishing the measurement system of non-market transaction costs(NTC) for the first time in China. It is found that the scale of NTC has been reduced obviously with the effective transformation of institution and the perfection of infrastructure since China carries out its reform. However, the negative influence caused by the unreasonable government regulatory control effects has been expanded. As a result, it has partly counteracted the institutional transition and the improving infrastructure, which led to the stabilization of NTC in Chinese economy.