The Empirical Research Of Institutional Change On Economic Growth In Rural Areas Of Guangdong Province

At present China has entered a new stage which refers to the comprehensiveconstruction of well-off society and accelerating socialist modernization development. Theconstruction of the new socialist countryside is a major historic task in the process ofmodernization in China. The development of rural economy is the focus of the nationaleconomy and it is also a long-term task for us. There is a large population living in ruralareas in Guangdong Province. Rural economic growth and development directly affects thedevelopment of Guangdong Province and the improvement of living standards of the people.The rural economy in Guangdong has made great achievements since the reform andopening up for more than30years. This article considers institutional change plays animportant role.Guangdong Province has made a lot of useful exploration in the area of rural reforms,and played a leading role in many areas such as stock-cooperation system in rural areas, thedevelopment of township enterprises, agricultural products circulation and so on. There aresimilarities between Guangdong and the whole country in rural institutional change butGuangdong Province has its own characteristics. From the new institutional economicspoint of view with the local government’s great effort Guangdong Province rural economicinstitutional change was the incremental reform connecting formal and informal systemwhich combined induced institutional change and forced system change focused onapplication of the preferential policies took the gradual path in general and mutagenic wayin part. Awareness of commodity economy and the concept of market also played animportant role in this reform. It is found that there is a great correlation between ruraleconomic growth cycle and development stage of reform through the description analysisabout the trend of rural economic growth in Guangdong Province and the process ofinstitutional change. The method of dummy variables regression was used in this article.Regretting the rural social gross output with time preliminary conclusion can be drawn thatinstitutional change really affects rural economic growth in Guangdong Province from amacroscopic perspective.By selecting representative indicators and using the method of grey correlationanalysis empirical results show that the institutional factors had obvious influence on ruraleconomic growth in Guangdong Province. Moreover rural finance and taxation systemplayed a more important role in rural economic than other systems from1978to2010. Township enterprises development for the rural areas of Guangdong Province has madegreat contribution to the economy. The contribution of taxes and the price system to ruraleconomic growth in Guangdong Province was greater in the early days than the other time.With the development of rural economy the financial development in rural areas willhighlight the effects on the rural economic development.