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An Academic Research about the Influence of Institutional Culture on Regional Economic Growth

Author: TaiXiaoDong
Tutor: ZhangYouLin
School: Zhejiang University of Finance
Course: Regional Economics
Keywords: Institutional culture Market economy environment Regional economic growth Comprehensive evaluation
CLC: F224
Type: Master's thesis
Year: 2012
Downloads: 129
Quote: 2
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Abstract


Which factors can influence the growth of economy? Why is there such a great gap among the economies of different places around the world? These problems are the focus which economists pay attention to all the time. In the recent years, the factors neglected by traditional economics, such as system and culture, enter into people’s vision gradually. Many scholars try to explain the problems in the progress of economic growth by system or culture, but there is not a systematic and convincing view. We can get a basic point of view that different institutional cultures play different parts in the regional economic growth through preliminary observation and research, excellent institutional culture can advance the perfection of market economy environment and the growth of regional economy. It constitutes the topic of the paper to research the reason of regional economic growth from the perspective of regional institutional culture.First of all, the author made a brief review on the relations of institutional culture and economic growth, and makes a deep analysis of the relations of system, culture and market economy environment as well. On that basis, this paper specifies the influences which involve formal system upon market economy environment perfection, political culture upon political system reform, economic culture upon economic organization innovation, ethics culture upon competition environment establishment, and religious culture upon scientific concept cultivation, analyzes the mechanism that institutional culture influences the formation of market economy environment. And then, this paper analyzes the relations between the two levels of market economy environment and economic growth from investment and efficiency, the author hold the view that the perfection of market economy environment has an effect on increasing investment through improving production efficiency, increasing demand for products, reducing enterprise cost, increasing the numbers of firms and decreasing interest rates. Besides, the perfection of market economy environment is favorable for technology progress, employees’efforts enhancement, resource distribution optimization and efficiency improvement.On the basis of theoretical analysis, this paper tries to analyze the effect of institutional culture on economic growth quantitatively. Firstly, this paper sets up a new model of economic growth which includes institutional culture, and deduces two conclusions. One is that the better institutional culture is, the faster regional economy grows; on the contrary, the worse institutional culture is, the slower regional economy grows. The other is that there is conditional convergence about institutional culture quality, the main reason is that the backward areas can get a faster potential technical progress rate by some means on the premise of the improvement of backward areas institutional culture. Secondly, this paper assesses the survey and statistical data of 30 provinces of our country, and works out the sores of different regions’ institutional culture. Finally, we can test the two above conclusions through observation and application of analysis of variance.In conclusion, this paper summarizes different institutional culture is an important reason for the economic growth gap of different regions, and puts forward relevant policy suggestions. The backward areas must reform their institutional cultures in order to develop their economies. Besides, this part summarizes insufficiencies and defects of this paper.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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