A View Of The Logic Relationship Of Institutional Change And Economic Growth

Economic growth is the precondition of enhancing wellbeing, society development and political steady. Traditional leading economic growth theories mostly overlooked the study of institution factor,or considered the institutions invariablely, while the new institutional economics' study on the ralationship between instition and growth lacked precise symbolic logic and analysis. But looked from the reality society , the institutional difference is the universal existence, also the social exists transaction cost. So the realistic institutional influencing don't allow to neglect. Since from 1978,economy growth with a high speed in China markedly has a close relation with transfering from planned economy to market economy. Wherefore there are very important practical and theoretical significance to study the ralationship between institutional change and economic growth in the economy transformation process.At present the new growth theory emphasis technology factor, but also notes the institutional factor, and also regarding the institutions as one of important attributes which influence growth, but adding the institution factor to the growth model isn't obviously satisfated; Moreover, it is not clear how the growth model manifest technical and the institution mutual function. In the process of theoretical model building, we want to make some attempts and break through in this aspect, this article believed that, the institution influences the economy mainly to lie in "the generalized technology" the aspect and affecting "the human capital" aspect. From this logic separately the article constructs four models of containing the sinstitutional factor growth model to discuss this issue further, and hopes to find some new idea about "institution influencing growth".This papar builds a econometric model which includes many factors,such as physical capital,human capital,labor and institutional change in the experimental analysis which based on the ralationship between the two in the period of transition of China. With the support of economic development data of China since 1978, using cointegration theory to analysis the time series, we analysis various factors on the impact of economic growth effectively. Finally, we use the Granger causality test to analysis the inherent relationship between the institution change and economic growth.This paper considers the indicator of institutional change from five perspectives: opening policy,property system,investment,financial and industrial structure. Therefore, in chapter five, we discuss the existing problems and shortcomings of economic reform in our country on these five perspectives. In the last chapter,we draw some main conclusions and present some policy recommendations.