Institutional Change And Economic Growth In Chongqing Empirical Analysis

Theories skyrocketed as a large number of economic scholars carried out extensive research after the system factor is introduced to the economic growth analysis framework. During the 30 years reform and opening-up, China has undergone a series of economic system reform, which has brought a rank of changes. This paper points out this is the root causes why China achieved a nearly 10% sustained and rapid economic growth miracle. Meanwhile, as regional economic units under various provinces, the municipalities directly under the Central Government are performing excellent in the series of economy system reformation as well, all of which take this opportunity to achieve different economic growth by tailoring measures to suit local conditions.Chongqing, as the youngest municipality directly under the Central Government, is growing to be an important growth pole in the western region, the economic center of the upper Yangzi River region, and the balanced rural-urban integration and development municipality. After the reform and opening-up, the economic growth of Chongqing is astonishing; between 1978 and 2008, the speed of GDP increased progressively up to 15.5% yearly. This dissertation relooks at this 30 years economic growth by using the theories of the new institutional economics.This thesis firstly describes the Chongqing's reform progress and market construction, and explains the fluctuation of Chongqing's economic growth from the angle of institutional changes, so as to preliminary determine that the institutional changes do affect economic growth. Then, by using measurement method, this paper does a deeper research about this issue--measuring the systems by forming a synthesis index system which consists four Macro-Economic indexes such as government function change, different market construction and development, enhancement of economic subject autonomy, and expanding opening degree. Quantitative results show a substantial progress of Chongqing's institutional transformation oriented by market; the synthesis system index increased by 481% during the last 31 years, with a 5.4% yearly increase. Based on this, this paper introduces the system variables to C-D production function so as to construct the system of economic growth model. By using this model, this thesis calculates the contribution rate of per capita capital and system variables to economic growth by measuring Chongqing's economic growth. The results show that between 1978 and 2008, the contribution rate of per capita capital to economic growth is 84.9%, the contribution rate of system variables to economic growth is 10.4%, so the effects of institutional transformation acts on Chongqing's economic growth are proved by empirical analysis.After the effects of institutional transformation acts on Chongqing's economic growth are proved, this dissertation proposes several suggestions to accelerate economic growth from four Macro-Economic indexes such as government function change, different market construction and development, enhancement of economic subject autonomy, and expanding opening degree. These suggestions include Continuing to deepen reform of the government, transformation of government functions, vigorously promoting all kinds of market development, Continuing to strengthen the economic subject autonomy, further expanding opening to the outside world.