Try To Talk About The North’s Transformation Of The Theory Of Institutional Change

The topic of this article is the influence of China’s reform of economicdevelopment of the exchange of North’s theory of institutional change.Combined withMarx’s theory of institutional change to comprehend and analyse the Advantages anddefects of North’s theory of institutional change.In use of the Human behavior、 Environmental factors、mental models to analyseits effect to the Economic growth. North’s thought defined the system to be thekeypoint of the economic growth in the early stage. However the exchange of North’s thought also talk about the problem of Path dependence which understand the theoryof Institutional change deeply. North emphasize the privatization of State-ownedenterprises makes more advantageous to the economic development,which ignored theproblem of the Public ownership of the Marx’s theory. Based on some examples,analyzed the both comparatively,to find out the theory which more conducive toeconomic development.In30years of China’s reform and opening,twice Economic reform,include thereform of the manage rights and the proprietary rights, which tell us that the Publicownership of the Marx’s theory must be the major part.Combined with Behaviorenvironment and Path dependence of clear definition of property right in North’stheory of institutional change. Make partly state-owned enterprises intoprivatization,which is the right way to the development of China’s economy.