The Transformational Mechanism Of Chinese Dual Economic Structure

There is the dual economic structure in the economic system of developing countries both traditional and modern sectors. A contrast of two different economic creates different environment, which affects economic development. So many economists suggested the transformation model of the dual economic structure. The dual economic structure was transformed by various policies and measures. Generally speaking, the transformation dual economy is essentially the process of economic growth. Economic growth demands a benign transformation mechanism between the traditional sector and modern sector. However, the dual economic theories are not perfect in the current developing economic; the assumptions are limited, which cannot cover many aspects of the dual economic structure and transformation. At the same time, these theories basically remain the level of theory, research and policy recommendations and are a lack of practical feasibility.The dual economic structure in China forms under the background of institutional transformation and economic transference, which affects economic development. But the dual economic theories of developing ecumenicists in many areas have a large gap between the economic realities of our country, therefore, we cannot mechanically absorb the theories to guide the transformation of our dual economic structure. we need review the dual economic theories to study the special character and the ways of dual economic transformation.This paper integrates the theories with economic reality in China on the basis of economic theory, starts from the evolution of dual economy, study the effect factors of Chinese dual economy and basic characteristics to understand the stage. At this stage, Chinese dual economic structure reflects not only the duality of modern urban industry and the traditional rural, but also dual industrialization in the urban and rural areas, the duality of the labor market and employment, the dual system of the urban and rural markets and the duality of the regional economy, thereby they hold back Chinese economic development. So, it is very important to study the problem of the dual economic structure in ChinaDual economic structure in China is caused by several reasons. Therefore, we study the transformation of the dual economic structure in accordance with the special characteristics of the dual economic restructure. This not only must rely on the expansion of the industrial sectors in the modern urban, but also must depend on the development of rural economy, look on the development of the rural economy as the basis of transformation of dual economy, so we need establish more transforming mechanisms: First, structural transformation. we will start from industrial structure, increase investment in agriculture, readjust the agricultural structure, increase the depth and intensity of the rural tax reform, select superior industries according to the different regional advantages, division of labor between urban and rural areas to ensure that urban and rural development. Second, non-agricultural conversion. We improve the conversion from traditional sectors to modern sector and from the dual economic structure to modern economy by non-agricultural development in rural areas. Third, institutional innovation. Through innovation system, we promote the reform of the land system and economic system, the taxation system, household registration system and the social security system through institutional innovation. Fourth, accumulation of human capital. That is to say, we need vigorously develop education; raise the level of accumulation of human capital. Transformation of dual economic structure depends not only on the market size, but also on the accumulation of knowledge and human capital. We can raise the scale and efficiency of investment in human capital through education to improve the quality of workers, which can encourage the workers to successfully participate in domestic and international economic division.