The Effect Of Institutional Change On Economic Growth Of China

Economic growth has always been one of the most important issues in economic research and is also the focus of social development in various countries.From classical economic growth theory to new-classical economic growth theory and later endogenous growth theory,the institutional is set as an established exogenous variable.Technology,physical capital,and human capital are the determinants of economic growth and cannot be reflected.The role of institutions in economic growth,however,in reality,institutions play a very important role in economic growth.A good example is that Chinese economic and social strides have been achieved after the reform and opening up,especially after the implementation of the reform of the market economy.With the development of the model,the living standards of the people have been greatly improved.It is of great practical significance to use North’s institutional theory to study the relationship between China’s institutional changes and economic growth.This paper mainly studies the impact of institutional and institutional changes on economic growth.First of all,North’s theoretical results are divided into three stages in chronological order,focusing on North’s theory of property rights,state theory,ideological theory,institutions,and institutional changes,laying the foundation for further research and analysis.Second,divide the stage of China’s economic development into phases according to before and after reform and opening up,and describe the characteristics of economic development and major system reforms in each stage.Finally,select the appropriate model,emphasizing the impact of institutional change factors on economic growth,integrating relevant data and processing,and conducting empirical analysis: Using time series data from 1978 to 2016,use institutional proxy variables to examine institutional changes and economics.The relationship between growth.This article mainly has the following conclusions:Judging from the current stage of economic development in China,China is an economy that is undergoing institutional transformation.In steady state,the growth rate of per capita output is equal to the growth rate of institutional changes and the growth rate of technological progress.From the development history of our country for more than 60 years,when the system is reasonable and adapts to the national conditions,when the economy will have a long-term development and the system is chaotic and unreasonable,the economy will fall into a downturn and may regress.It can be said that in different historical periods,the path of national economic growth will also be different.In the transition period,the system construction is still not complete.The economic growth mainly depends on institutional changes(m),and in the market economy period,the system is relatively perfect,and technological progress(g)Make a greater contribution to China’s economic growth.Judging from the characteristics of China’s economic development,countries with different paths of institutional change depend on the gap between the rich and the poor.Our country has no advantage in terms of its technological level.In fact,it can use the method of institutional reform to catch up.This is for developing countries.The catch-up strategy provides more choices and ideas.