Institutional Analysis Of China's Economic Reform

From the perspective of institutional analysis.economic system is a systematic institutional arrangement about patterns of resources possessing and resources allocating in a society in a certain time.the corest institutional arrangements of planned economic system aremeans of production belong to state and using mandaory planning to allocate recources.On learning from and drawing on the Soviet Union's experience,New China had gradually established the planned economic system from 1949 to 1957.China's planned economic system are made up of a set of institutional arrangements that condition and suit mutually .There exist obvious internal drawbacks,which lead to realistic dilemma in these institutional arrangements.lt is the institutional ineffectiveness resulted by these dilemma that made the transition from planned economy to market economy become the necessary choice after economic system reform of China.The process of China's economic system reform is,in essence,a process of substitution,transformation and transaction,and a process of change of institution innovation and institutional structure.As one of the greasiest institutional change.China's economic system reform represents formal as well as informal institutional changeJust as each economic system's operation need cost.instirutional change resulted by economic system reform of China is an expensive process.Only if these costs is limited in a certain extent can social members support the reform steadily.The process of 20 years institutional change indicates that China's economic system reform has gained enormous achievement,which is the early implementation of institutional change from planned economy to the market economy.Up to date,however,the planned reform goals have not been.There are still many problems in the reform.In general,these problems are the obvious institutional dificiency .Under such conditions,we must take institutional innovation as the core task to promote of economic system reform of China.But institutional innovation is never plain sailing,21 Gentry's institutional innovation of China's economic system reform will face with lots of difficuties.Thus,if we want to establish socialism markert system,effective measures should be taken to push the institutional innovation.Establishing socialism market system by institutional innovation is final goal of economic system reform of China,this goal can be dismentled four institutional structures:(l)to establish rural market economic institutions;(2)to create effective microeconomic institutions;(3)to build steady macroeconomic institutions;(4)to establish informal institutions suitable to market economy.