Researsh On The Relationship Between Institutional Change And Economic Growth

Economic growth is the Precondition of political stability and social progress. Traditional leading economic growth theories mostly ignored the research of institution factor,or a few scholars have realized the influences on economic growth by institutional factor, but they saw it as an established constant, while the new institutional economics study on the relationship between instition and economic growth lacked rigorous mathematical reasoning and empirical analysis. But from the perspective of social development, the function of the institutional factor on the economic growth can not be ignored.Economic growth with a high speed in China markedly since the reform and opening, it has an intersected connection with economic institution change. At present, the economic development and the economic institution reform are two basic tasks in the economic area in China, the economic institution reform is designed to promote economic development, and the institution need to be constant changed with the development of economy, the two are complementary to each other. Therefore,the research on the relationship between institution transition and economic growth can make some proposals for the further economic institution reform and more healthier economic development in China.The economic growth theories and institutional change theory have been taken as the theoretical basis for the paper, and it used to be analyzed the interaction between institution change and economic growth. Firstly, from the qualitative point of view, normative analsis method is used to be analyze the intrinsic mechanism of institutional change roling in economic growth , further, the influence of economic growth to institutional change can be discussesed. Secondly, from the quantitative point of view, the co-integration theory is used to analyze the various factors which influence the economic growth based on the data of the economic growth since 1980 in China, and then we use the Granger Causality Test to test the causal relationship between the institution change and economic growth, after that, we analyze the institution change effect on the stage of economic growth by using the Chow Breakpoint Test. Finally, the main research conclusions of this paper are made.Then this paper considers the indicator of institutional change from three perspectives: opening policy, property rights institution and marketization, therefore,we discuss the existing problems and shortcomings of economic reform in our country on these three perspectives. After that we put forward some suggestions for reference combining with the actual situation in our country.