The Theory of the State of the New Institutional Economics and Its Modern Significance

The theory of the state of the New Institutional Economics is composed of the theories of the national origin,theNorth Paradox,the role of Countries in the formation of property rights system,the relationship between state and institutional innovation,and the relationship between the state and institutional change.The theory has the enlightenment significance regarding Chinese government reform and the practice:firstly,The government and the rule foundation is inseparable.secondly,the government should undertake responsibilities for the institutional changes in demand and supply of the system.thirdly,the government should play the role of efforts to eliminate the North paradox,and fourthly,the government Should play its important role in the process of the economic institutions innovation.finally,the government should play an active role in the changes of the property system.