The Impact Of Institution On Economic Growth

The report of the 19th National Congress of the Communist Party of China accurately describes the changes in the main contradictions in China’s society,pointing out that uneven development is the main aspect of the contradictions;The20th National Congress of the Communist Party of China further pointed out that this imbalance in development still exists.From a regional perspective,the current imbalance in China’s development has led to a new trend of "rapid development in the south and slow development in the north",and the economic differences between the north and the south have attracted much attention.Against the backdrop of prominent structural and institutional contradictions in the economy,some deep-seated institutional and institutional issues,and increasingly visible barriers of interest consolidation,economic growth in most regions of the North is sluggish,and economic differentiation between the North and the South is constantly spreading.This can not help but make one wonder about the differences in the impact of institutional factors such as institutional mechanisms on economic growth in the North and the South.This article analyzes the impact of institutions on economic growth from the perspective of North-South differences,which has a good inspiration for narrowing the North-South gap and promoting coordinated regional development.Based on the perspective of North-South differences,this article analyzes the impact of institutions on economic growth from three aspects: theoretical,empirical,and empirical.First of all,this paper sorts out,summarizes,and summarizes relevant theories and literature,and explores the impact mechanism of institutions on economic growth from both direct and indirect aspects.Secondly,based on the practical situation and the perspective of North-South differences,this paper explains the relationship between institutions and economic growth from the perspective of empirical data.On the basis of relevant research,this paper uses the entropy method to construct the "institutional level" from five aspects,namely,the level of property rights diversification,the degree of marketization,the degree of openness to the outside world,the idea of official standard and the sense of entrepreneurship,as the agent variable of the system in this paper,and compares the evolution trend and gap of the institutional level in the North and the South in detail from different years,different regions and other dimensions.In the empirical analysis,firstly,institution is introduced into the economic growth equation to explore the direct impact of institution on economic growth in the north and south.Considering the relatively short period of economic differentiation between the north and south,the north and south regions are divided into overall periods(2006-2020)"Pre North South Economic Differentiation" period(2006-2012)and "Post South South Economic Differentiation" period(2013-2020)are three different time periods,and longitudinal empirical analysis and comparison are conducted to explore the differences in the impact of institutions on economic growth in the two regions during different time periods and conduct stability analysis.Further,in order to test the indirect impact of institution on economic growth in the mechanism,this article explores the technological innovation and human capital channels of institution on economic growth and compares the differences between North and South.Finally,considering the internal differences between the north and south,and referring to the cultural similarities within the north and south,the north and south regions are divided into seven regions for heterogeneity analysis.Based on this,suggestions and countermeasures are proposed to improve the system in the northern region and promote coordinated development between the north and the south.The findings of this study are as follows:(1)There is a gap between the systems of the north and the south.The institutional gap between the north and the south is generally the gap between Jiangsu,Zhejiang,Shanghai,Guangdong,and the north,where the market economy is relatively developed.This indicates that the essence of the institutional gap between the north and the south is the gap in the degree of marketization;Internally,the main reason for the low system level in the north is the poor system level caused by institutional obstacles in North China and Northeast China,where the economy is relatively developed in the north;In addition,from the perspective of time trends,the real significant manifestation of the institutional gap between the North and the South due to external impact factors was the economic differentiation between the North and the South in macroeconomic terms after 2008,which was earlier than 2012,reflecting the endogenous driving force and resilience of the institutional level between the North and the South;From a comparison of different regions,the institutional gap between the east and the west has remained generally stable in the past 20 years,with a trend of convergence and finalization,while the institutional gap between the north and the south has a trend of continuous divergence and expansion.(2)There are differences in the impact of institutions on economic growth between the south and the north,and the level of institutions in the north lacks internal continuity and resilience;However,the internal continuity of the southern system on economic growth is strong,reflecting a strong internal driving force and resilience.After replacing the explanatory variables and eliminating the four provinces and cities with higher institutional levels in Jiangsu,Zhejiang,Shanghai,and Guangdong,the results are still robust.(3)Institutions promote economic growth through two channels: technological innovation and human capital accumulation.Although these channels exist in both northern and southern regions,the specific impact is still different;In terms of technological innovation,institutions have inhibited the promoting effect of technological innovation on economic growth in the north,while in terms of human capital accumulation,there is no significant difference between the south and the north.In addition,the heterogeneity analysis found that the promotion effect of institutions on economic growth in the Yangtze River Delta region is the weakest,while the impact of institutions on economic growth in the Northeast and Inner Mongolia regions has a significant inhibitory effect,while the southwest region has no significant impact.Based on this,propose countermeasures and suggestions for improving the system in the northern region and promoting coordinated development between the north and south: firstly,handle the relationship between state-owned and non-state-owned economies well;Secondly,handle the relationship between the government and the market well;The third is to transform thoughts and ways of thinking;Fourth,build a new system of open economy;The fifth is to leverage the important role of talent and innovation in economic development.There are two main aspects of research innovation: firstly,innovative research perspectives.The study of the impact of institutions on economic growth based on the differences between the North and the South enriches the study of economic differentiation and institutions between the North and the South,providing institutional explanations for economic differentiation between the North and the South,and providing inspiration for promoting regional coordinated development.The second is innovation in research content.This article explores the impact of institutions on economic growth from the perspectives of theoretical mechanisms,institutional measurement,empirical testing,and mechanism analysis,and introduces informal institutions into the institutional measurement indicator system;Considering that the overall duration of economic differentiation between the North and South is relatively short,the research interval is divided into three stages: overall stage,pre economic differentiation stage,and economic differentiation stage,and on this way,the conclusion is more comparable.