The Research On The Relationship Between China's Market Evolution And Economic Growth

This paper combines the theory of the New Institution Economics and New Classical Economics , uses statistical analysis tools, analyses the relationship between market evolution and economic growth from the theoretical and the empirical level, leads to the theoretical and realistic conclusion, which can provide theoretical basis and policy recommendations for China's sustained, rapid and healthy development.The first part of this paper is theoretical analysis. It analyses the mechanism between market evolution and economic growth from the aspects of institution change, transaction cost and division of labor . Institution change and innovation can reduce transaction costs, improve the efficiency of transaction, and the improved transaction efficiency can deepening the division of labor, which can promote economic growth and lead to the expansion of the market. In the second part of the paper, it studies the process of China's market evolution since opening up to the outside world, analyses the process of the transition of China's economic system from the traditional planned economy to the socialist planned economy system, at last the establishment of the socialist market economic system. The third part is about the empirical research, it studies the relationship between China's market evolution and economic growth by SPSS15.0 . The result of the analysis is: the degree of marketization and opening up to the outside world has a significant positive effect on the economic growth,on the contrary, transaction cost has a significant negative effect. In the fourth part, based on the theoretical and empirical research, we have the following conclusions: in order to keep the economy have a sustained, rapid and healthy development, China must improve the market economy system gradually, reduce transaction cost and promote the marketization and opening to the outside world process.