Research On The Effect Of Institution To Eastern Economic Growth

Based on the current economic in China developing into the "new normal",to deepen the reform and to release more institutional bonus is of great significance to promote economic growth.As the eastern regions are the China's opening to the outside world and the most economically developed regions,it is of very important enlightenment function to study on the influence of eastern institution change on economic growth,which can grasp the relationship between economic growth and institution change accurately and promote the coordinated development of regional economy and the institution construction.This dissertation will analysis the eastern economic growth impacted by institution change directly or indirectly.First comb the related theory of literature,and analyses the direct effect and indirect effect on economic growth from the basis of domestic and foreign related researches.Then on account of the basis of the new institutional economics theories,the paper introduces institution changes and economic growth in east China from the experience.Finally it takes data of eastern 11 provinces from 2002 to 2013 to be samples and uses principal component analysis to synthesis comprehensive index and analysis the relationship between institutional change and economic growth in the panel data fixed effects model regression,which verifies the institution change of direct effect and indirect effect on economic growth.The study found that institution will not only directly positive influence on economic growth,will also affect the allocation efficiency of the factor to indirectly affects economic growth.The institution changes of the eastern region are beneficial to the improvement of the output efficiency of labor,but go against the technology and the physical capital output.To only take the single effect of institution changes on economic growth into consider,will underestimate the effects on economic growth.In sub variables of the system,no matter from the standpoint of direct effect and indirect effect,the effect of the marketization on economic growth is the greatest,followed by the property rights,and opening is least influence on economic growth.The effect of institution on the labor output efficiency in eastern is more obvious than in physical capital output efficiency.Based on this,the study puts forward the following Suggestions:to speed up the construction of the modern market system,and further improve the quality and efficiency of economic growth;to accelerate the construction of service oriented government and further promote the eastern economic growth;to precipitate the construction of an new open economy system,and further enhance the level of eastern opening at home and abroad.