Research On China's Growth Pattern Transformation From The Perspective Of Institution

The Modern economic growth theory usually suggests that economic growth is realized by labor,capital, technology,institution and many other factors. Variety combination of factors does determine the different pattern of economic growth. Simply speaking, the economic growth pattern refers to a country or region's means or methods in promoting economic growth. A certain pattern of economic growth will influence the quality, speed and efficiency of economic growth directly.From the historical process of world economic development, economic growth pattern has experienced a dynamic evolution process from lower level to higher level, from extensive to intensive. Before mankind entered the industrial society, economic growth had a significant characteristic. During the period, the land and agricultural materials of production constitute the main factors in promoting economic growth. Family manufacturing, primary processing of agricultural raw material and simple trade became the principal means of economic growth. After entering industrial society, land and other agricultural materials of production became a secondary factor in promoting economic growth, capital accumulation, technical equipment, advanced machinery and cheap labor has become the key elements of economic growth. In the initial stage of industrial society, economic growth mainly relies on cheap labor and primary processing of resources. Labor-intensive industries are the leading in the whole industrial structure of this phase. In the mid and late industrial society, economic growth relies mainly on large-scale chemical production and heavy investment in fixed assets, capital-intensive industries have became the leading industries of this phase. After 1970s, most western developed countries have experienced a transition from industrial society to post-industrial society, which is known as knowledge or information society, as well. The key factors in promoting economic growth once again changed, that is, human capital, knowledge production and diffusion of information technology became the key elements. High-tech, high value-added industries and modern service industries became an important foundation for economic growth. It can be seen that the evolution of economic growth pattern from lower to higher level is always accompanied by the changing of elements"status"or importance.In theory, the intensive pattern of economic growth has a higher output efficiency and stronger competitive advantage than extensive economic growth pattern. Because put the same number of production factors, intensive pattern of economic growth means more total output of society, For individual production, the enterprises engaged in intensive pattern of production and management can get more profits. Therefore, intensive growth pattern should be a gradual replacement for extensive growth pattern. However, the practice of China's economic development indicated that the reality is not as supposed. Since 1995, the fifth Plenary Session of the fourteenth Communist Party's Congress clearly put forward the objective of transforming the economic growth pattern. In 2007, the seventeenth Communist Party's Congress did re-emphasis to accelerate the transformation of economic development pattern to realize"three transformations", which is known as"the transformation from relying mainly on investment and export to relying on a well coordinated combination of consumption, investment and export, the transformation from secondary industry serving as the major driving force to primary, secondary and tertiary industries jointly driving economic growth, and the transformation from relying heavily on increased consumption of material resources to relying mainly on advances in science and technology, improvement in the quality of the workforce and innovation in management.". As is known to us, the growth rate, scale of investment, industrial added value, total retail sales of social consumer goods and some other economic indicators of"quantity"were always growing beyond the expectations during past years of development throughout the country. Nevertheless, the structural optimization, technological innovation, environmental protection, resource conservation and many other"quality"goals were not achieved yet. These fully demonstrated that China's transformation journey of economic growth pattern over the past 10 years is not very smooth as expected.Indeed, the extensive economic growth pattern has played a positive role to change China's"poor and white"backward. It is useful to reduce the gap with the developed countries rapidly and improve people's living standards. However, the long-established economic structure is irrational, low level of technology, shortage of natural resource, environmental pollution has become the main constraints to industrialization and modernization. In particular, we have sounded the alarm from the international financial crisis erupted last year. In the current international financial crisis, the most seriously affected industries and enterprises mostly rely on the low-cost resources. Their technical and management level is extensive, value-added products is relatively low. The facts tell us that the extensive pattern of economic growth supporting China's rapid economic development in the past is not sustainable and it can not be copied to road of future development. If we do not transform the extensive pattern of economic growth, China's economic and social development will be difficult to sustain.At the same time, transforming the economic growth pattern and improving the quality and efficiency of economic development are important strategic issues for us. At present, China is facing to achieve industrialization and modernization, to increase social wealth and enable people to share the fruits of development, to achieve the dual mission of social justice, to realize economic development and resource conservation, environmental protection. It is obvious that we can not repeat the traditional industrialization road of Western developed countries. We must take the initiative to promote economic growth pattern transformation, which is a development road with Chinese characteristics different from others.Whether it is based on the theoretical view of Marxist economics, or on Western economics analysis methods, we can draw a conclusion: the main reason for long-term continuation of China's extensive economic growth pattern is that an effective system goes absent. To be more specific, there is some distortion of the institutional arrangements in China's current economic system, which provides the survival conditions for the extensive economic growth pattern. This institutional arrangement makes the economic agents gains higher through the pursuing extensive production and management than pursuing intensive pattern of production and operation. Thus, it will reduce the enterprise's effort to change the pattern of production. As a result, it makes it difficult to achieve economic growth pattern transformation. We can draw a conclusion that the system change has exceeded the constraints of technology and structure in transforming the economic growth pattern. Therefore, we must promote the system innovation to find a breakthrough in economic growth pattern transformation.At present, China is in the perfect stage of socialist market economic system and the market mechanism has yet to be further improved. The institutional infrastructure supporting economic growth pattern transformation is still not perfect. To achieve transformation of the economic growth pattern, we must attach enough importance to institutional innovation, accelerate the establishment of institutional mechanisms contributed to economic growth pattern transformation, including enterprise management mechanism to improve the efficiency, the price formation mechanism for resource conservation and a fair competition mechanism, so that the enterprises will rely on technological progress and management innovation to compete in the market. As a result, it will lead to the transformation of economic growth pattern and scientific development.To implement system innovation and promote the transformation of economic growth pattern, it is necessary to let the market mechanism play the basic role in allocating resources, but also pay attention to the role of the government's active guidance. In particular, it is important to clearly define the scope for government intervention and market regulation in different areas. It should be said, compared with the economic reform, the current pace of China's administrative system is relatively lagged behind. In the future, we should improve the government responsibility system and speed up the administrative system reform, rationally define the activities of the government in a market economy. It is necessary to reduce the government's direct intervention in micro-economic operations, strengthen social management and public service functions. It is also important to establish a system ensuring the market mechanism to play the basic role in allocating resources and display the superiority of the socialist system and lays the foundation for China's economic growth pattern transformation.Based on relevant domestic and international theories of economic growth and economic growth pattern, this paper puts China's socialist market economic system as the background, takes the analysis perspective of institutional economics and focus on the obstacles of economic growth pattern transformation and realization of the path. In regard to method, the paper does put behavior analysis, institutional economics and economic growth research into a unified analytical framework to elaborate the relationship between economic growth pattern and the institution evolution. With respect to content, the paper studies Marxist economics and Western economics,take new institutional economics theoretical perspective and aim to explore the deep-rooted obstacle factors restricting China's economic growth pattern transformation. At the same time, the paper puts forward the study of economic growth into the depth, covering the content from an economic system construction, mode selection and reform of China's administrative system, etc. In one word, the paper focuses on transformation of China's economic growth pattern, try to arrive at a conclusions with theory of value and practical significance and provide theoretical support and practical proposals for China's future development.