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《Northeast Asia Forum》 2006-01
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New Angles on Rejuvenation of the Northeast Old Industrial Base

TANG Ji-jun(Center for China State Owned Economy Research Jilin University, Jilin Changchun ,130012,China)  
If there is zero economic, institutional and social sunk costs, the northeast traditional industrial base freely enters the market, industry structure adjustment freely happened. If, however, there are a lot of sunk costs from the asset specificity, transaction costs, and appreciation policy, and so on, we will find these sunk costs not only impede the market-institutions exit and industry structure adjustments, but also reinforce the existing economic structure. Sunk cost recovery or reduction is an effective method to resolve the iron triangle, evolving toward the market economic system.
【CateGory Index】: F127
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