Chinese Dualistic Economic Structure Conversion System Analysis

The institutional background of traditional dual economic theory is perfect market economic system , that is very different from the developing country. During the course of the market economic transformation in the developing country, they put the emphasis on adapting the institution change of the market economy, but based on resource proper collocation, traditional dual economic theory ignored importance of institution in dual economic transformation, as a result, it can't obtain famous practice performance on direction of developing country economy development. For this reason, the article try to respond classical tradition of labor division of New Classical Economics, and draw a theoretic framework on dual economic structure from the view of the evolution of labor division, from which we can provide theoretic method on dual economic structure transformation and economy harmonize development in China.Analysis of demonstration on dual economic structure slowly transform has showed that it is difficult to clear up the restrict factor of economy harmonize development in China, which is changing institution of market-directed and structure of industrial-directed. For the view of resource proper collocation, the one of evolution of labor division is more efficiency to promote transformation of dual economic structure. The author advances a new framework includes formation reasons, impact factors and transformation approach, in which analyze view is evolution of labor division and transaction cost, analyze skeleton is from evolution of labor division to institution change and structure transformation. The framework shows that there are two forms in labor division, one is society-division, another is one inside organization, market and organization is different institution basic on harmonize two division forms. Because division organization is only way which can connect with society-division and organization- inside-division, unification of socialization produce and specialization produce become realization, thus, division organization is institution basic of division deepen develop. Formation reason of dual economic structure is difference of labor division evolution in different section, which is caused by division organization and transaction cost, ultimately caused by institution. It is very important that pay attention to the function of division organization, transaction cost and institution in transformation of dual economic structure.Market-directed reform has provided elementary institution environment for produce division organization and reduce transaction cost on market institution lay and organization institution lay. In modern section, enterprise transformation from purely manufacture unit to market principal part, which provide institution basic for division deepen develop, so transaction cost turn into main factor to restrict division deepen develop in modern section. In traditional section, it is impossibility to established division organization based on labor division and cooperation in farm produce fields. When farmer attach himself to society-division, he will be forced to face high transaction cost, the above-mentioned will result in division evolution be locked-in restrain state. Surrounding collectivity aim of industrialization and urbanization, the conclusion was drawn out that to midwifery new division organization is most important to reduce transaction cost in full process of primary products, to improve autogenetic ability of participate in society-division, to clear up division restrain in traditional section. The institution innovate in different section is only way to harmonize modern section and traditional section development.