Efficiency Of Institution,Technology And Regional Developmental Models-a Comparative Study Of Sunan Model And Wenzhou Model

Economic growth is the most concerned hot topic.There is no doubt about the achievements of China’s economic development in the past 40 years,but the economic growth in the new period is facing great challenges.As for the motivation of economic growth,the fundamental difference between the Traditional Western Economic Growth Theory and the New Institutional Economic Theory lies in that the former regards technology as the key factor of economic growth,while the latter regards institution as the key factor.Based on the relationship among institution,technology and regional economic growth,this paper takes the two typical economic development models in eastern China,namely Sunan Model and Wenzhou Model,as examples to study the following issues: What are the differences in the efficiency of Sunan Model and Wenzhou Model in different periods and stages of development?How to construct a set of models based on the two dimensions of institution and technology,so as to explain the reasons for the difference of efficiency between the two models? How to put forward a set of theories and methods that other regions can use for reference in choosing development models?In order to answer above questions,this paper analyses the impact of institution and technology on regional development efficiency.Firstly,this paper briefly reviews the theory of institutional change,technology,efficiency,path dependence and path creation,and summarizes the existing literature.Secondly,the paper uses the method of DEA analysis to measure the technical efficiency differences of the two modes in different time and developmental stages based on historical data.Then,it compares and analyses the general situation,annual changes,regional differences and trends of the two modes,and draws the similarities and differences between the two modes at different stages of development.After making a comparative analysis of them,weighting and synthesizing the index of institution by using the method of principal component analysis,and examining the behind reasons of the difference in efficiency between the two regional development models based on institutional and technical factors.It draws a conclusion that the contribution of institutional factors is the dominant factor in the early stage of the development of the Sunan Model,while the contribution of technical factors is the dominant factor in the later stage.The whole development process is the interaction of institutions and technology.The Wenzhou Model is dominated by the contribution of institutional elements in the whole process of development.Finally,it draws a general conclusion about the relationship between technology,institution and regional economic efficiency,and points out that no matter which mode,the adaptability of institutional and technical elements needs to be solved.Although their roles are different in different periods,the development of each region should coordinate and handle the relationship between the two.Based on the above analysis,this paper puts forward three suggestions for institutional reform:Firstly,improving the property rights system in areas;Secondly,further expanding the opening up of areas;Thirdly,promoting the financial system reform in areas.Two suggestions for technological innovation are as follows: ensuring the supply of technological progress to economic development in areas;establishing the guarantee mechanism for technological progress in areas.