The Reform Of Province Directly Manage Counties From The Perspective Of Institutional Change Theory

New Institutional Economics in today's world is showing its great value. And as an extremely important theory in the new institutional economics institutional change theory has given us a great deal for thought. The development needs system, but the system is not static, institutional changes shows that a highly efficient system will replace the inefficient system, but the impact of the old system will not end,the path-dependent effects will continue for some time. The face to build well-off society and realize the grand goal of socialist modernization, we fill with passion, but we still have to face the reality that China has a vast rural areas, there are many less-developed regions, only rural develop, and peasants get rich, then China will get stronger really. Then what is the key problem to development? In my opinion, it lies in the development of county economy, and only a strong county economy can support government solving the issue of hundreds of millions of peasants off fundamentally. The superstructure will be counter-productive in the economic base, in order to develop county-level economy and co-ordinate urban and rural areas, China's administrative system must be reformed, I believe that county government must give full play to the role of the system.But the system of city manage counties is playing a role in binding the county. Zhejiang, Hubei, Henan and other provinces have already begun the reform of Province directly managing Counties, in the face of this new system changes, I have confidence that it will have a strong vitality.This paper is divided into five parts, the first is the Introduction, the second part is the knowledge of the theory of institutional change. The third is to analyze the development overview about country government, and summarize the shortcomings of the municipal governing county, demonstrate the feasibility of the province managing directly counties and challenges, Part IV is mainly setting out in provincial counties path from Chinese national conditions, Part V is mainly setting out the specific reform measures from the provinces, cities and counties as well as ancillary measures. This essay analyzes the relevant theories of provincial counties in a system perspective and combine. In the end, I make specific reform programs and specific measures. I hope it will stimulate the reader thinking, and hope it have some reference value to China's administrative reform.