The Impact Of Distortions Factor Price On The Consistency Of China’s Economic Erowth And Employment Growth At Transformation Period

Since the reform and opening up, China’s GDP has got a rapid growth, base the GDP of1978, from1978to2010, the average growth rate of GDP was9.4%, but economic growth rapid did not ease the employment pressure in China, especially in the early20th century.The unemployment rate is always very high, this phenomenon is the theoretical with the practical experience of all countries and also obey national economists abstract experience of all countries. Okun’s law thinks that economic growth will bring employment growth. Therefore, the economic growth and employment growth should be a positive relationship. But China’s economic development process is clearly Okun’s law. Due to the existence of the phenomenon of how reasonable explanation related to governance unemployment and expand the choice of employment policy. For explaning this phenomenon, the economic history of our world, the existence of a positive relationship between a country’s economic growth and employment growth. Economic development situation is good or bad a direct impact on the level of employment, the more o the economy grow fast,the more employment growth will be brought. According to a growing trend from the1990s, China’s employment problem, which is obviously contrary to China’s fast economic growth.How to explain this phenomenon is related to the governance of unemployment and expanding employment policy choices. From the perspective of the production factor market distortions, this paper analyzing the impact of the proposed solution of a difference between the two phenomena.At last give the policies and proposals to solve this promblem.The Innovation of this paper is to use new institutional economics path dependency theory to study Transition elements market distortions, which is benefitted to the rich and supplement traditional distortions of the market economy based on the assumption of the traditional Western theory; The second, there are much literature about Domestic factor market distortions a, but overall is normativeh; individual elements, less comprehensive study of multi-elements. To solve this problem, this paper use modern quantitative analysis methods and a litter new data, analysis the empirical of the economic effects of Chinese production factor market distortions,provide empirical evidence for the study and formulation of relevant policies, in order to compensate for the lack of past research.