Research On The Mechanism And Effects Of The Impact Of Soft Business Environment On Economic Growth

Under the new pattern of opening up to the outside world,economic growth puts higher demands on the optimization of the business environment.At the first executive meeting of the State Council in 2018,Premier Li Keqiang proposed that "optimizing the business environment means liberating the productive forces,that is,improving the overall national strength." Under the premise of continuous improvement of hard environment such as infrastructure,the reform of soft environment elements such as government behavior,rule of law environment and market environment shows great competitiveness.Therefore,it is of great significance to study the mechanism and effect of the soft business environment on economic growth.Firstly,this paper analyzes the mechanism of government behavior,rule of law environment and market environment on economic growth by using transaction cost theory,property rights theory and adaptive efficiency theory.On this basis,it comprehensively analyzes the impact of soft business environment on economic growth.Secondly,combined with the theory of economic growth,soft business environment is introduced into the economic growth model through total factor productivity.Thirdly,using econometric analysis method,through the selection of business soft environment indicators,using the relevant data of 31 provinces,empirically analyzes the impact of soft business environment on economic growth.The main conclusions of this paper are as follows:(1)The soft business environment influences the efficiency of resource allocation and technological progress,which in turn affects total factor productivity,thus affecting economic growth.(2)The impact of the soft business environment on economic growth depends on the impact of various factors on economic growth,which will vary in different time periods.Among them,government intervention plays a role in guiding the optimal allocation of resources in the stage of imperfect market economy development and low level of economic development.However,with the improvement of market mechanism,the market's advantages in the field of resource allocation appear,and government intervention for economic growth is manifested as an inhibitory effect.At present,China's various institutional mechanisms need to be improved,government intervention is manifested in promoting economic growth.(3)The prosperity and development of the non-state-owned economy promoted by market-oriented reform has a significant positive effect on economic growth,but its role is negatively affected by financingconstraints.(4)The impact of administrative efficiency and rule of law environment on economic growth is not significant.This is related to the long delay in the reform of the administrative approval system.The improvement of the rule of law environment is slow and the impact needs to be tested over a longer period of time.(5)To further optimize the soft business environment to promote economic growth,it is necessary to standardize government intervention,reduce unnecessary intervention by the government in the relatively perfect market mechanism,deepen market-oriented reforms,and alleviate financing constraints.The main innovations of this paper are as follows:(1)Study economic growth from the perspective of soft business environment,learn from the previous economic growth theory and institutional economics research,define the soft business environment,set the measurement index of the soft business environment,and introduce the soft business environment to the economic growth model.(2)By analyzing the impact of various factors of soft business environment on economic growth,a comprehensive analysis of the impact of soft business environment on economic growth is formed.The main shortcomings of this paper are as follows:(1)The various factors of the soft business environment are not systematically formed into a comprehensive indicator.Only the factors of the soft business environment are introduced into the economic growth model,and their impact on economic growth are analyzed separately.(2)Due to the availability of data and the influence of model setting,indicators of the soft business environment only select the representative index variables that are representative in extensive research,and do not cover all the soft business environment.