Author(s)

Fan Dong，Xuefeng Zheng

Corresponding Author

Fan Dong

Abstract

From the perspective of transaction cost of new institutional economics, the benefits of enterprises in market trading are studied. But state-owned enterprises with government nature have not only brought benefits but also brought costs. Therefore, this paper argues that the existence of state-owned enterprises is inevitable from the perspective of transaction cost, and the inevitable result of state-owned enterprises' participation in market competition and the reform of state-owned enterprises.

Keywords

Transaction costs, State-owned enterprise, enterprise, Power supply.