Endogenous Institution, Best Governance And Chinese Economic Growth

As North(1990) says, the institution is one of the most important factors of economic growth of one country economy. But the formality, the concentration and the way of the transition of the institution are very different in the different country or the organization (Tianye, 2005), and the character determines the difference of economic growth.In the current empirical research literatures, there are rarely papers that it makes the institution as the endogenous variable. Almost all papers regard the institution as a restriction and motivation of the neoclassic economic growth factors, and indirectly study the relationship of the institution and the economic growth. For example, Frankel and Romer (1999) used the panel data of 98 countries to study the relationship of the trade and economic growth. Shen kunlong and Li jie (2003) used the period data to analysis the function mechanism of both. Pang xiangdong at al.(2005) used the panel data of 89 countries to probe the relationship of the institution and the trade and the high technologic produce, and so on.In generalization, the literature does research on the both: First, the theoretical framework of the kind of literature is the same as the neoclassic theory, and it just uses the model to analysis the relationship, the mechanism is like...