The Institutional Supply Of Government And The Deelopment Of Private Economic

Since the founding of new China, especially the reform and opening up30years, review the history of the development of private economy, can be found it has a close relationship with the institutional supply of government. From1949tol978, China implements highly centralized panned economy system. Government adopted reform, restrict, and even to ban private economy policy with the aid of its coercive power. This restrained the impulse of private economy development, the private economy almost disappeared. After the reform and opening up, in the process of transition from planned economy to market economy, the government gradually set up and perfected a series rules in line with the market economy system, pushing the institutional change of economic development in China. New institutional economics tells us that institution factor is crucial for the economic growth.The fundamental and supporting institutional supply promoted the vigorous development of private economy. The development of private economy constantly put forward new institutional demand, pushing the government constantly adjust system arrangement, increasing the institutional supply, driving continuous improvement of the national system. But, our country is still in economic transition process, the institutional supply of government is still imperfect. Private economy still faced with institutional constraints, such as incomplete property rights, the discrimination of market access, and lack of financing channels and so on. This requires the government to promote the institutional innovation, to further promote the rapid development of private economy. In this paper, the development of private economy as the research object, using system theory and institutional change theory of new institutional economics to analyze the relationship between the government institutional supply and the development of private economic, pointed out that the current institutional constraints faced by the private economic development in the macro-system level, in order to seek institutional supply and institutional innovation to promote the further development of the private economy.