Institutional Advantage Of Chinese Economic Development

China's economy has achieved thirty years high speed growth. Humandevelopment index keep rising, impoverished population substantially decreases.China become the most prominent nation of the developing and transition country ineconomic. The existing economic theories meets a challenge to China's economicdevelopment, analysising the causes and mechanisms become the focus of economists.At the present, there are three main explanation of China's economic development,government-ledding theory, advantage theory and institution theory. But the existingtheory is not perfect, still need further improvment. Because its history, the angle ofstudy and value orientation, and other factors, these theories are easy to neglect andmisunderstand the experiences and methods of China economic development, whichare worth to sum up and insist. According to these theories, results andrecommendations are not accurate and comprehensive. Therefore, it's need to thinkdeeply about the similarities and differences between China and other countries,especially in the institution field. Thereby a new perspective to understand theChinese reform would make the existing economic problems have more in-depthunderstanding, so that in the future the reform can have a definite object in view, andclear direction.In order to understand the institutional advantage of Chinese economicdevelopment, first is codification of extant theories, organize definition, dimension,function, evolution and other aspects of the institution theories, especially torecognize the relation between organization and institution. In the analysis,organization should be incorporated into the institution category. On this basis, inorder to deepen the understanding of this category, and break the limitation of originaltheory, from a new angle to explore the definition of institution, it is important torecognize the similarities and differences of technology and institution, which can bemore profound understanding the connotation of Marx historical materialism. It willavoid the confusion, and create the condition of fusion the the western institutionaltheory and the Marx economy theory together.Secondly, the theory of ideology is the forefront of the development of institutional economics. Human consciousness will determine their preference,behavior, and cognitive approach. Economists have been hold conflicting andrejection attitude to ideology, therefore the history of ideology should be backtrack.Then we can analyse its general function for economic development. On the basis,during the planned economy period of China, we can points out the existing problemsin the field of ideology. And as the ancient civilization, it also can be found theadvantages and special characteristics in the field of informal institution. Thendiscuss the breakthrough success of Chinese ideology of path dependence inperformance, and summarize the successful implementation of Chinese mainexperience in ideological evolution.Thirdly, the Chinese government is very important to Chinese economicdevelopment, but the western economics have skepticadid the government behavior ineconomic field for a long time, hence it's better to explain characteristics of Chinesegovernment and its influence on economic development. One hand, Chinesegovernment can contain lots of benifits from different groups. On the other hand,through the analysis of government intervention in the economy policies measures,we can clarify Chinese government intervention make positive effect in economy,Including helping the market economic system embed into the original system,effective fiscal and monetary policy system, the system of governmental dominantcompetition and isolation institution in the process of economic globalization, andgovernment intervention becoming a formal, legal system and standardization. Thefour aspects make Chinese government be in the dominant position of the reform,support stable, orderly and effectively resisting for Chinese economy development.Fourthly, it is the core content of introducing the market economy to Chineseeconomic reform. China 's market economic system is also different from othercountries', which contains the key point of Chinese institutional advantage. Prior toanalysis, it is necessary to clarify some views of market economy.By a road model, itdemonstrates that private ownership of production material is not efficient in markettrading institutional arrangement. After that, we use the prisoner dilemma model toanalysis several major economic form of human history, focusing on a newinterpretation to the the capitalist system. On this basis, through the analysis on thecharacteristics of socialist production relations, emphasize its comparative institutionadvantage. With these theories, we can research the core of reform in China--socialistmarket economy, founding the peculiarity and advantage characteristic of the very rare market economy, such as the state ownership economy institution as thedominant in ownership cooperation, and strengthening China's national coordinationof productivity and production relationship.These promote the rapid development ofChinese economy, and represent a more vibrant economic institutional arrangements.Finally, on the basis of Chinese institution advantage, it can be morecomprehensive understanding of China's current problems and perspectives. Foundsome point of views weaken Chinese existing system advantage, especially someideology in the field of new liberalism and democratic socialism. In addition, thereform of state ownership enterprise and officials immoral behavior also makenegative effects on economic development in china. At last, according to theseproblems, using the analysis of the successful experience of reformation of China,we can put forward some simple ideas and specific solution. Can take the incrementalreform for the officials immoral behavior, to break the existing anti-corruptiondilemmas. Can use a portion of the profits from state-owned enterprise to offsetpersonal income tax reform, in order to consolidate China 's institutional advantages.