Studies on the Institutional Constraints on the Economic Development of the Central China and Innovation of Institution

The gap of economic development between the central and east of China had widened in recent years. This paper worked over the economic development of the central China under the framework of "institution determinism". It considered that institutional factors were the fundamental reasons for the slow speed of economic development of the central China. These institutional factors included the consciousness of "officer standard", the mode of thinking for human relationship, the thought of "wait, depend, and ask for", to a certain degree of "soft regime", less development of the market system, too much intervention on economy by the local government, low proportion of the non-state owned economy, lag of the reform on property rights and lack of credit etc. Consequently, we could not quicken the speed of economic development of the central China and shorten the gap between the central and east unless innovation on institution was taken.