Types Of Institutional Structure And Performances Of Economic Growth

Economic growth has always been the eternal pursuit of human development,and it’s also an important field of unremitting research in economics and political science.The economics field’s research on the factors affecting economic growth has mainly formed schools of neoclassical growth theory,new growth theory,and institutional change theory.Since the 1970s and 1980s,there have been a lot of Political Studies on economic growth in the West.Many studies show that "state" is the key variable affecting a country’s economy,and the current research mainly focuses on the perspective of policy,state capacity,the relationship between state and society,and institutional perspective.Human historical experience has proved that the market mechanism is more conducive to economic growth than the planned economy,because the market mechanism is guided by market demand,based on free competition,and is more efficient in the allocation of elements and resources.However,from the reality,we can easily find that the economic performance of the countries with market economy system is quite different,even the countries with planned system transforming to market system in the same period also show quite different economic growth results.Taking China and Ukraine as examples,this paper tries to analyze the reasons for the differences in economic growth performance between the two countries from the perspective of Institutionalism and New Nationalism.This article believes that national economic growth should be based on strong state capabilities,and the shaping and realization of national capabilities rely on the establishment of an empowered and aggregated institutional structure.The state’s pursuit of economic growth goals will be subject to different degrees of "political constraints","local constraints" and "profit sharing constraints".All institutional structures that can overcome these constraints are empowered and convergent,which can effectively promote economic growth;on the contrary,what is unable to overcome the restraining force and realize the national preference in all aspects is the pro fitsharing and dissipative institutional structure,which will lead to economic stagnation or even recession.Research on China and Ukraine find that although the political and economic reforms were implemented at the same time,Ukraine failed to form a convergent institutional structure during the reforms,and even the various systems inherently weakened the forces of the state,failing to overcome the three constraints,resulting in a serious economic recession.China,on the other hand,has effectively overcome the three restrictive forces by establishing a set of aggregated institutional structure,and has realized the enhancement of state capacity and preference,thus effectively promoting economic growth.In short,countries with different institutional structure types have different performances in economic performance.Only by establishing an empowered and aggregated institutional structure that can overcome the three major constraints can it effectively promote national economic growth.Inspired by the institutional perspective and the new nationalism perspective,this paper discusses the relationship between institutional structure and economic growth,sums up two types of institutional structure,and emphasizes the importance of aggregate institutional structure to economic growth,so as to expand institutionalism in theory.At the same time,through the analysis of China and Ukraine,the relevant experience and lessons summed up have certain theoretical and practical reference value for other countries in transition.