Institutional Research On The Economic Development Pattern And Dynamic Mechanism Of China

To look on development as freedom is the basic attitude to the development, analysis on the economy’s vicissitude from the perspective of institution is the entry point to our country’s development problem. Different from the attitudes towards the institution based on rules or goods, it is a distinctive feature to hold the view on institution based on freedom in this paper. The view of institution from freedom is reflected in:institution is the freedom’s boundary of every rational man through the public recognition, the gap of the degree of freedom is the motive force of institutional change.From the angle of institutions, this article has a study on the pattern of economic development of our country both from positive aspects and from negative aspects, and then puts forward the corresponding policy recommendations. The concept on the pattern of economic development is bigger than economic growth. Over30years of rapid economic growth in China, it has created a so-called "China miracle" and caused extensive interest and heated debate on the "China model" both at home and abroad in recent years. But the success of economic growth is not necessarily the final affirmation on the pattern of economic development, China’s high-growth saddled with heavy social costs, such as resources and environment destroyed, wanton spread corruption, more and more serious polarization, and moral decline etc. Behind the glory of China’s high growth, problems and difficulties occur everywhere, Along with the subprime mortgage crisis and the outbreak of the European debt crisis in2008, plus with lack of external demand and weak domestic demand, economic and social contradictions show up increasingly and even become white-hot. This article not only explain China’s economic growth from the angle of economy, but in a more comprehensive perspective from the angle of institution to explain China’s economic and social problems, i.e. the pattern of economic development. In the analysis of the pattern of economic development, we should not only can explain and summarize the cause of the high growth mechanism in our country, at the same time be able to point out that all the other social problems and its inner link, it’s more important that we should think about why the same economic development strategy has suffered a huge setback and now is walking with great difficulty, how about the future? This is the focus of the research and the way of thinking in analysis. In addition to the obvious historical turning point about the pattern of economic development in our country, the poor economic explanation from the foreign economic theory including institutional economics theory prompted the author to discuss the problem with strong impulse. The opposite argument about the future of our country’s economy and fierce theoretical clash also makes the author have to go into deep thinking.How to interpret the Chinese economy? From what perspective to explain our economy? On the basis of looking up various theories and economic views, the author analyzes from the angle of the more general, concluded that China’s economic problems fundamentally is the system problem. But why western new institutional economics can’t get satisfactory answer in the interpretation of our country economy? It is a problem of the theory itself. In thinking about the institution theory, the author thinks that the western institution theory is doing analysis from microcosmic efficiency,"institutions-incentives-performance" is the basic analysis of the new institutional economics. But our country has obtained remarkable and ever unprecedented achievement in the economic environment of lacking the right to the property, hidden rules prevailing, transaction costs holding high, small circle of relationships running popular and so on. Because of this, the western institutional theory seems unaccustomed to the climate of a new place in explaining our country’s economy phenomenon. In order to solve this problem, the author expand the concept of institution from the traditional horizon on relationship between persons to the horizon on relationship between human and matter, and from the analysis of the original power of institutional change, the author find the two kinds of dimensions of institutional change and its inner link, they are the dimensions of the new institutional theory and the one of the Marx’s institutional theory. We found that Marx’s theory of institutional dimension is more suitable for analyzing economic development for the late-development countries far from the frontier of science and technology, and new institutional theory is more appropriate in explaining the economy of countries standing in the frontier of science and technology. It should be pointed out that, Marx’s institution dimension is not Marx’s theory institution itself, just from the perspective of matter’s restriction on human to observe the institutional concept.In this paper, the theory innovation is mainly reflected in relevant argumentation of the motive force of institutional change. Specifically, in the horizon transformation of the concept of institution, from the relative independence of human from matter we prove that anyone is always living full of the Infinite thirst for freedom. Human’s reason and limitless desire make humans have infinite negativity, which constitute a motive force of the economic and social development, and the freedom gap constitutes the motive force of institutional change. This analysis framework about the motive force of institution can very well to unify the two institutions theory, which not only help to understand the economic problems of our country, can break down the barriers between the two institutions theories, and so to some extent enrich the microeconomic foundation of the Marxist institution theory. This is the theoretical significance of this paper. Another innovation is we give a new interpretation of our country’s economic development. By adopting the institutional theoretical framework of the relationship between human and mater, we have carried on a thorough analysis on the pros and cons of our economic development and point out the four conditions why our country economy gets such development achievements: prerequisites, internal conditions, external conditions and material conditions, and point out the reason and process of the four conditions play a role.In addition, on the basis of the comprehensively reading the thought of freedom, we put forward a new method of measurement of freedom, and have an empirical test on the relationship between economic development and freedom in China with the historical data. Finally, from the gain and loss of our economic development, the article presents five suggestions:Reduce administrative intervention and change the government economic role; To re-realize the economic development power and change the direction of policy; Reform the income distribution system and establish long-term effective mechanism of promoting fairness; Deepen reform of the culture and cultivate social moral consciousness and advocate the spirit of innovation; Look on development as freedom and take the sustainable development road.