The Evolution Of Social Structure Under The New Economic History Perspective, Institutional Change And Long-term Economic Growth

Exploring the basic mechanism for long-term economic growth has been a major and fascinating subject in the study of economics. This paper uses the analysis paradigm of new economic history, extracts the basic structure which impacts sustained economic growth through the inspection of the track about historical evolution of Western Europe, and tests it using the history of institutional change in Western Europe since modern times. On this basis, comparing the basic differences about system between China and Western Europe since modern times, this paper validates this basic structure's feasibility for Chinese economic interpretion, and has a complete empirical explanations on the rise and fall of our country since the Ming Dynasty, in order to find out a breakthrough constrainting Chinese economic development, and propose the basic direction of social reform.The past economics literature discusses the single factor such as cultural, technological or institutional aspect which influences economic growth. Study of Daron Acemoglu, Simon Johnson and James A Robinson (2005) and that of Zhang YuYan and Gao Cheng (2004) establish a theoretical framework only on the evolution of history between 1500-1850 year in Western Europe. This article constructs the theoretical hypothesis of the interaction among the evolution of social structure, institutional change and long-term economic growth. And it applies not only to explain the rise of the Western world, but also applies to explain the trajectory of Chinese long history evolution and the rise and fall of our country since modern times.Comparing the different development paths between China and Western countries since modern times, we initially find that the source which influences the decline of modern China is that property rights can not be developed independently. While private property rights and market trade is early developed in China, the control of centralized system results in the fault of the middle class since the Spring and Autumn, and affects the development of the middle class and the establishment of modern system structure in modern times.Therefore, a break-through of social change should focus on trying hard to develope the middle class from the dual structure in order to have an independent negotiating ability. Only through the middle class' continued game and compromise with the country, can the structure of modern system be gradually established and the modernization of the state can be achieved.Inspecting the experience of the rise of Western European countries, we note that the evolution of the social structure has a profound and lasting impact on the long-term economic growth the country achieves. British civil society and the state matured to have the ability to reach a compromise during the mutual game, so that the structure of British society was changed in the power balance of nation and society, and new classes changed the country's predatory behavior through constitutional revolution. This was a tremendous pressure on other Western European countries, and ultimately some authoritarian countries such as France also established a modern system structure during the continued conflict.The industrial revolution staged one after another in Western European country.By investigating the evolution of the long history, especially the rise and fall of our country since modern times, we find that, a centralized rule peaks in Ming and Qing Dynasties.Under the domine of authoritarian State which controlled institutional arrangements of property rights, the wish of the contracts decreased, and the rigidity of contractual protection weakened, so bargaining power of civilians was losed. Even if the weak protection of property rights between the civilians and the bureaucracy existed, civilians couldn't form a stable expectation and the corresponding bargaining power.Since modern times, When China became a semi-colonial and semi-feudal society, the power of property rights protection of the state was losed, the state couldn't promote the growth of new forces facing external aggression, so the functions of the state weakened step by step, and the state were immersed in a non-management level.Since the foundation of new China, the state established a planned economy model of power centralization highly.The elimination of private property rights and market transactions resulted in the rigid social structure.Even if the power of strong social integration exsited, private power could not be promoted to become growth and development.Since reform and opening, economic reforms the state launches top-down inspires folk enthusiasm, and a long-term asymmetric strength pattern between the country and community gradually breaks down, because the relationship between the state, market and property rights is adjusted.However, solely relying on heightening social mobility is not sufficient to support a country's economic development. If only modern system structure balances the relations between the state and society, can the expansion of the national powers be effectively constrained, and the growth potential among the people can change the outcome for the economic growth through the reasonable combination.Our research shows that, a long-term power which achieves sustainable economic growth lies in restructure of social structure. Only by changes of social structure, is the middle class developed from the gaps of dual structure and civil society is formed conducive to collective action, so the activities border of the state power is constrained. When the market trading system and the corresponding property protection system can set up during civil society's interaction with the country, the rule of law is established to promote the country to play for the functions of protecting property rights and advancing the market transactions, and all kinds of resources scattered in the lower social strata are fully encouraged and effectively allocated, the state can be prosperous and stable in the long term.We need realize that pluralistic rights structure of civil society share and balance on state power by transferring national rights to civil society if we shake off the plight of dual social structure.Therefore, basic idea of reform is that, relative separation between state and society is progressively completed by external advance of the country and endogenous evolution of changes of social structure, and then benign interaction between state and society is achieved by state power infiltrating into civil society and countries interventing limitely civil society. Strength balance and mutual constraints are reached by game and compromise, so ultimately modern system structure is established to realize modernization road of our nation.