Economic Transition and Quality of Economic Growth in China:Accounting for Contribution Ratio of Total Factor Productivity

Economic development is affected by the quality as well as rate of economic growth. Economic growth quality consists of an important part of economic growth. Economic transition is in essence the process of large-scale institutional change,and the key is make the institution correct to form the key variable of social institution structure-the social incentive structure,to save transaction cost in economic growth,and to build the incentive and governance mechanism. This paper estimates the quality of economic growth through 1878-2004 in terms of contribution ratio of total factor productivity. The empirical findings show positive impact of marketization,industrialization and urbanization on the quality of economic growth. Thus China economic transition promotes economic growth quality to a certain extent.