Abstract: Economic Law is enacted to adjust the economic relationship that possesses characteristics of integrality and social commonality and needs the state intervention. It is a law in essence a means of overcoming the market failure. Generally, the assumption of market failure is a significant premise of researching the economic law’s emergence, adjustment object and system. On this premise, once the market failure appears, the micro-economy may lack efficiency and the macro-economy will be unstable. As a result, those conditions will bring about disadvantages to China’s market economy. For the sake of explaining clearly the role of China’s economic law in overcoming the market failure, this paper analyzes the reasons and manifestations of market failure, legislative principles of economic law and its advantages of overcoming the market failure.
Key words: market failure; economic law; market economy
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