Research On China's Economic Growth Based On The Analysis Framework: Macro-property Rights System

During 30 years of reforming and opening-up, the rapid growth of China's economy is known as "Chinese miracle". It was mainly explained in two ways:some scholars attribute the high-speed growth of China to high rate of capital formation, abundant and low-cost labor and the increasing of total factor productivity in the Solow and endogenous growth path, but they cannot explain why the growth of china's economy was faster than those have similar or even better endowment per capital resource, levels of education, technological innovation, etc. Based on institutional economics theory, other scholars explain the rapid growth of China's economic due to institutional change, but they also can not explain why China's economy demonstrates even better than the countries in which market economic system more complete, national property rights system more explicit.With the distinction of the micro-economics and macro-economics, the article introduces the concept of macro-property rights system, thereby overcomes two major deficiencies of modern property rights theory of liberal tradition of Western and trend of micro-analysis, and makes the use of "state-property-transaction costs-economic performance" analysis framework to analyze the Chinese miracle possible. The article proofs that in the stage of economic taking-off, there is inherent requirement of non-neutral macro-property rights system, and non-neutral macro-property rights system which formed under the government intervention can play very well to reduce transaction costs to achieve the effect of rapid growth of economy. When the national economy reaches the mature stage,non-neutral macro-property rights system will gradually evolves into the main obstacle of economy growth. Whether a society can success finally depend on the establishment of macro-property rights system which tend to be neutral, at this time mental structure of society or cultural patterns will play a decisive role.Since reform and opening-up, China build a good non-neutral macro-property rights system which favored the capital formation by partly placed land, labor and other production elements in the "public domain", the rapid formation of capital inevitably leads to the rapid growth of economy. However, with the economy expand to a certain stage, non-neutral macro-property rights system makes a restrictive function on the growth of economy, whether China can build a neutral macro-property rights system has a relation with the success of the society in the future.About that content, the article expands the study accorded to the academic standards of "academic proposition-theoretical deduction-empirical tests-research findings and policy recommendations".The introduction and the first chapter put forward the academic proposition. Because traditional theory is hard to reasonably explain "Chinese miracle", the article put forward explaining the possibility and necessity of "Chinese miracle "by studying macro-property rights system in the introduction,the first chapter of literature review even demonstrates the major research value of this academic proposition on basis of sorting out relevant research at home and abroad.The second chapter is the basic of theory, the third chapter is historical verification, and both of them are theoretical interpretation. The second chapter analyses non-neutral or neutral inherent requirement of macro-property rights system in different historical periods of national economy. On this basis, put forward two level of macro and micro of the incentives of property rights system, and then systematically put forward the theory of macro-property rights system. By placed in the development of the history of modern economy, the third chapter verifies macro-property rights system which puts forward in the second chapter, separately explain the rise and strong of Western Europe, the United States become an overlord, the rise and fall of the Soviet Union, the East Asian miracle, Latin America traps and other historical phenomenon, initially demonstrates the correctness of the theory.The fourth chapter and the fifth chapter are empirical test.The fourth chapter analyses formation condition, state of development and future trends of China's macro-property rights system. By the initial driving force of competition of local governments, along with the game of community interest groups, forms China's non-neutral macro-property rights system which "over-protection of capital property", "inadequate protection of labor rights property" and"loss of land property rights ",on the basis of the planned economy and public ownership. By constructing models, the fifth chapter tests the effects of economy growth of non-neutral macro-property rights system, the results show that there is a positive relation between "incentive rent of property rights"formed in a non-neutral macro-property rights system and China's economy growth, to a large extent, thus it can explain institutional basis of "Chinese miracle".The sixth chapter and the seventh chapter are conclusions and policy suggestions. The sixth chapter first of all demonstrates a non-neutral macro-property rights system also brings about negative effects such as insufficient domestic demand, inefficient investment, and weak independent innovation. After overcapacity, because of non-neutral macro-property rights system, China' economy faces the danger of "Latin American trap". To avoid it, the most important things of China is to build a neutral macro-property rights system. And then, the chapter further analyses it is possible that china establishes a neutral macro-property rights system. Due to the state opportunism and interest groups, lagging behind of political system, the long process of cultural change, China faces a great resistance to build a neutral macro-property rights system, but it does not mean it can not be possible. The conclusions in the seventh chapter demonstrates, China can effectively build a neutral macro-property rights system as long as she can further deepen the reform of micro-system of property fights, take private property right to a certain areas, deepen the reform of economy and policy system, establish a mechanism of moderate withdrawal government, achieve the transition from government-led market economy to a market-led market economy, at the same time, support the vulnerable groups to build interest groups of snobbish balanced system. In this stage, democracy is an essential part. The article finally emphasizes the decisive significance of forming a good social structure of mental, and it requires China can further promote freedom of mind and independent of academic.