An Empirical Study About Endogenous Institutions On The Impact Of China's Economic Growth

This paper is an empirical study about the endogenous institutions impact on economic growth. From formal and informal institutions of the two respect to consider and construct institutions index I and II with the principal component Analysis, the paper empirically examined the influence of endogenous institutions to the Chinese economic growth using the TSLS technology with 1952 -2005 China's economic time series data. The results of test had indicated that this influence was remarkable and stability, simultaneously discovered Previous research about the rate of institutional change existing bias and inconsistencies. The first chapter of introduction elaborated the background of topics, research purposes, the paper structure, methods and innovation and so on, and has carried on the summary to the endogenous institutions and the economic growth research's related literature. The second chapter endogenous institutions model and data sources. Briefly on the economic circles within the setup of model on endogenous institutions and the economic growth, Paper specifically introduced the uses of endogenous institutions model. Then explained this paper institutions index's construction, instrumental variable, controlled variable's choice and various variables' data sources carries on showing on the paper. The third chapter endogenous institutions model regression and testing. First of all an endogenous of institutions Wu Hausman test, followed the exogenous of instrumental variables Sargan test, afterward acts according to the model which in the second chapter introduced to carry on the regression, simultaneously has confirmed the model robustness. Finally, the fourth chapter is the conclusion and the policy meaning.