The market-oriented allocation of factors requires the further deepening of market-oriented reform and we should promote the factors that have not fully realized the market allocation to be determined by the market. In order to realize effective market allocation of resources, it is necessary to perfect the market economy. The reasons are as follows. First, the market determines the free flow of resources between sectors and enterprises. Second, total factor productivity has been increased. Third, property rights flow through the market.The reform of improving factor market mainly includes the construction of complete factor market and the market-oriented reform of factor price. The key to the effectiveness of market allocation of factors lies in market order. In view of the current market situation in China, the construction of market order to achieve effective market allocation of factors mainly involves the following aspects:(1) Cultivate market players who can independently make decisions.(2) Establish fair, open and transparent market rules.(3) Establish a unified and open market.(4) Reduce the cost of market regulation.(5) Improve the property rights protection and circulation system.In a word, the market allocation of elements is a system engineering. The key for market allocation of resources to achieving the goal of efficiency is the overall effectiveness of the market. The key to market effectiveness lies in market order and regulation.
