The Impact Of Regional Culture To Regional Economic Development

On regional economic development imbalances, Domestic and foreign scholars have been trying to find the answer from capital,labor and technology. With the rise of institutional economics, more and more scholars began to pay attention to institutions,culture and other non-economic factors. In fact the culture of the regional has a profound and extensive impact to regional economic development. Cultural differences are one of important reasons that lead the difference in regional economic development. By exploring the relationship between the regional culture and regional economic development and the mechanism that the regional culture impact regional economic developments have a great significance to narrow the gap between regional economic developments, to promote economic development in backward.This paper based on the basic theory of institutional economics, by using various analysis methods, we define regional culture as a kind of inform institution in the new institutional economics framework to explore the relationship between the regional culture and regional economic development and the mechanism that the regional culture impact regional economic developments. This paper first introduces the basic theory of new institutional economics, based on the institution theory, we create theory model of the regional culture and regional economic development; then by using the data of inter-provincial region in China 2008, empirical analysis the relationship between regional culture and regional economic development; then this article comparative the economic development in Hunan with Zhejiang ,analysis cultural reasons of the difference between the two provinces; Finally, based on analysis of the front ,we analysis the cultural reason that course Hunan economic development behind, and promote some Strategies and proposal to develop Hunan economic.This paper studies the impact of regional culture to regional economic development, the main conclusions are: as an informal institution, the regional culture by influencing the choice of the formal institution, implementation of the formal institution and change of the formal institution affect regional economic development, advanced cultures will promote economic development, while the backward culture will hinder economic development, so in order to promote the economic development of a region, we should innovative culture and change the backward culture, lead the regional culture better adapt to regional economic development. The main innovation of this paper is: First, the paper start from the new institutional economics to study the cultural impact on the economy, and put culture as an informal institution into the economic growth model. Secondly, in this paper, by using China's provincial data empirical analysis the relationship between regional culture and regional economic, and prove that regional culture is one of the internal driving force for regional economic development.