The Empirical Study And Model Of Economic Growth Including Institution

Kuznets believes that economic growth is " the long term rise of the capacity of providing people with a wide range of economic products, and this ever-increasing ability is built on the advanced technology and the necessary institutional and ideological adjustments." From this, economic growth are inseparable from the institution and technology of these two elements. Institutional impact on economic growth are obvious, In a sense, the institutional and technological progress, are able to make production more efficient, with fewer inputs greater outputs. Institution also has incentives which technology has not. Weitzman, M. pointed out that the endogenous growth theory opened the "Solow residual value" of the black box, give an endogenous explanation to technical change. However, this open-up of the black box also contains a black box, this theory in the emphasis of human capital and technical knowledge to the neglect of the institutional elements. Since the mid-70s of the 20th century, with the emergence of new institutional economics school of thought, they have the technological revolution, economic growth and even the rise and fall of the country have a new explanation. North believes that the system matrix is an effective feature of the organization formed a production activity and the development of skills and knowledge to give reward for the economic and political environment. New institutional economics studies are based on reality and put forward the "Institution Matters" proposition - the institutional arrangements conducive to innovation is to promote social progress and the main force of technological innovation, and economic systems. The evolution was considered the efforts which people had made in order to reduce the the transaction costs.For that previous research and economic growth, mainly used measurement methods to look for a suitable instrument to discuss a variety of institutional variables on economic growth. There is less mathematical model. The neo-classical economists usually take institution as exogenous , for the study of institution is relatively small. To solve these problems, this paper tries to build a mathematical model from different angles such as institutions and economic growth based on the characteristics of path-dependent institutional change to introduc the institution into endogenous economic growth model. then,analyze the existence of equilibrium, stability and long-term balanced growth, as well as the impact of institutional factors on the convergence speed and the impact of growth path and so on. Impact on economic growth for the study of institution, econometric model of the past was mainly focused on the role of the institution on economic growth, while the interaction mechanism between the two rarely involved. In fact, institutional change on economic growth, economic growth will also affectinstitutional changes, but the process of institutional change possiblely exists of path-dependent characteristics. For these questions the past literature on this research, whether of mathematical models and econometric models are are rarely involved. Therefore, this paper set up a mechanism based on path-dependent change and economic growth model and based on the time-series data of China 1952 to 2006 to empirical research. In fact, because the institution is multidimensional, a system impact on economic growth in other systems are carried out under the premise of existence. It is undeniable that the system works on economic growth are complementary and have a co-ordinated to explore the coordination of system and economic growth in the future of institutional economics are strongly want a brand new area of concern. At the same time, the system of economic growth have not to be ignored on the space factor. So after the two chapters of the article is to answer such questions.In short, the idea of this study is divided into three parts. The first part is literature review and appraisal; the second part is the introduction of a institution with different angles of economic growth mathematical model; third part is empirical research. An Empirical Study on the front of the main mathematical model to explain the institution and the interaction between economic growth and an in-depth exploration of how the institution works on economic growth, including path dependence and economic growth, the co-ordination on economic growth, the spillover of economic growth Spaces. Specifically, the article structure is as follows:Chapter I, Introduction. Introduce the topic of this paper, the significance of research purposes, research methods and article creation and shortcoming.Chapter II, Literature Review. This chapter is a survey of the literatures of the property rights institution, political institutions and economic institution made its own comments.Chapter III, the introduction of institutional factors of endogenous growth model. This chapter includes two models, the first model is based on Marx's theory of institutional change at the essence of economic development on a macro-institution changes deciding the overall theory of institutional change to bring the institution to economic growth, and second is biochemical model of effects from a consumer to maximize the angle of the model setting up by the existence of equilibrium, stability and existence of equilibrium and stability of the system exist circumstances affecting factors on the impact of the convergence rate. the main conclusions is that a good institution can make the economy stable equilibrium points exist; can improve the balance of per capita growth rates and long-term balance in the overall economic growth; a poor country can reduce the time to chase the rich countries, namely, to speed up the convergence rate, thus it can explain the advantage of situation. Instead, the institution making a bad economy does not exist a stable equilibrium point; makes the balance of per capita output growth rate and long-term balance between economic growth rate of negative growth, which could explain an affluent country can become poor situation, namely the reversal of theisntituion. Including endogenous growth model of technology within the biological and chemical are the main two ways," learning by doing" and technical research and development, because of model 1 used the " learning by doing" approach, so the model is based on two technology research and development are the way to consider. Under such circumstances, the introduction of institutional factors to the endogenous growth model. Two main model systems are investigated the impact of factors on the impact of balanced growth path.Chapter IV, economic growth model based on the path dependence of institutional change. This chapter also includes two models that model three and model four. models Three are the main changes of the instituons are subject to physical capital, human capital, technology and system perspective. Uzawa (1965), Romer (1990) and Grossman and Helpman (1991) and others using the two departments of thought, try to set up to introduce the system of factors endogenous economic growth model. Discussed the model set up by the existence of equilibrium, stability and balance for long-term growth rate for comparative static analysis. Model of the main conclusions are: 1, human, material and capital allocation would lead to an imbalance in the lack of technological achievements in line with its institutional environment, making the economy deviate from the balanced growth path. Two, the original system on the system changes the impact of different growth rate of long-term balance of a great difference. Because the first three models are in the production function for the Cobb - Douglas function, this is a very strong assumptions, and there is no empirical analysis to do. Especially for a large agricultural country like China, its production function returns to scale are not necessarily the same. China's Institutional Change transformed from a planned economy to socialist market economy characteristics of the process, the system changes have a strong correlation, that is path-dependent characteristics. Therefore, this paper tries to model at a four generalized production function of the basic set up on a path dependence based on the characteristics of institutional change endogenous growth model. model four is the main conclusions of the study is to investigate the characteristics of path dependence based on institutional change and economic growth interactions.Chapter V, economic growth empirical research based on the path dependence of institutional change. In the model set up four basic econometric model to illustrate path dependence based on the institutional change and economic growth relationship. Model concluded that changing from a planned economic system to a socialist market economic system, each of the major elements of production such as labor, material, capital and technology to greatly promotes the economic growth. In the control of other major elements such as human capital, physical capital and technology in the market economic system under the system's role in promoting economic growth greatly enhanced, and the system through the path-dependent effects of system changes, thus further promoting economic growth; At the same time, economic growth in turn promote institution change, which makes institution's role in promoting economic growth become larger. Such a virtuous cycle, making China's economic growth miracle is inevitable.Chapter VI, the coordination of institution and economic growth. The above is to use mathematical methods to explore different ways of introducing the system of factors of endogenous growth models exist in equilibrium, stability and long-term balanced growth, as well as path-dependent characteristics of institutional change and economic growth issues such as mutual influence . But the isntituon is multidimensional. Multi-dimensional institution is how to work on economic growth? This is a great difficulty faced with isntiuion and economic growth. This chapter is mainly using China at the beginning of fiscal 1994 reform of the tax system established under the premise of how to reform the property rights isntituon to enable them to adapt in order to better play its role on economic growth conditions, the use of panel threshold measurement method is discussed in detail.Chapter VII, the Spaces spillof isntituon and economic growth: econometric study of spatial panel fixed-effect. For some Chinese provinces and municipalities have thirty countries, the gap between rich and poor is huge, its market-oriented reform process is inconsistent. This Chinese market-oriented process, in particular property rights institution reform on economic growth to promote the role of the spillover in space, this is a very interesting question. This chapter uses space panel fixed-effect method of measuring to analyze this.