Research Of Western Institution Innovation Contrubition To Economic Growth

It is an erver-lasting topic of economic growth, especially in the developing countries who consider it as a vital issue for people's living and improvement. China is being on her way of reforming and openging up, and has won such a great success that its economic increased at the rate of 10% during the past 30 years since 1978. As an economic learner and studier, we not only feel pround about it from the bottom of our hearts but also should try to give a relevant explanation for it. And this is the job our paper going to attach. The following paper will ask and answer the questions on the steady growth and economic reforming, for instance, " what have reforming bring into us " , " and how dose it increase the efficience of the economic system" .Before starting study we have read most of the important referrences, and those will be a good guide for our work. We find that though the fomer papers look institution rebuilt and reforming high in the progress of economic development, they did not find the path or routine of institution operating. What' s more, they consider that capital increasing input, human resourse input and technology progress were really the ture dynamic to economic growth. It is a big fault and would make a misdirect if we do not recorrect it. In fact, the gradual increase of invest, free labor and technology improvement could not give any explanation of economic developent but just are the refelction of economic success. The real drive for growth is just institution progress which improves the effiency of the economic and causes a lasting cut of trading cost.For the former research of institutional effect to economic there is also a hard to get the data to describe institutional change and evaluate it. In this paper, we have mastered that kind of method and skill to calculate the level affluence of institutional improvement, and this is one of the creation we achived. One more thing we should declare here is that we sample Shannxi, Qinghai, Gansu, Xingjiang, Ningxia and Neimenggu from the 12 provinces in West China to supply the fact and data for our positive research. The sampled 6 provinices can be seen as a sub-area of West China, and this action is approved wise that deeply reduce the hard work of data collecting and processing in 12 diffirent provinces.In this following model setting and data calculating section, we find that institutional innovations and improvements in the field of ownership's diversity, market-oriented regulation construction, public fical and opening up has done an obsival influence to economic growth. The calculation of effect is done by a smartly modified classical economic growth model in which the institution facter was embraced as a independent variable. The institutional attribution to economic growth is 35 percent in contract with 70 percent of capital per labour. And the historal comparation show that those attribution rate was raising during the past 30 years. In conclution, this positive research approves that institutional innovation had done good to the economic growth of West China and its effect is getting bigger.As a result of this paper, we also trying make some direction suggest for the institution refroming or rebuilt in West China. It includes the contents or aims of the reform and the suitable path finding. We feel that our work will do a good progress to the institutional change and economic growth accdamic study in China. This positive research would do a fever to the following learner or researcher to this topic, and this is what the righter hope to mostly.Though we have put almost of our time and enegy into this paper, it would't be perfect because of the imperfect insight and knowledge of the righter. So, any prisis and disagreement would be welcome.