A Critical Review on New Structural Economic

Abstract

New structural economics has become one of the most influential economic theories in China today. However, there are still many scholars and students in economics who could not understand the nature of its theoretical and analytical framework and policy recommendations, which make it necessary to describe and evaluate it objectively. This paper investigates the object of study, analytical framework and policy theory of new structural economics, which, in terms of object of study and analytical framework, lies in an intermediary form. in the transition from traditional neoclassical economics to new classical economics by Xiaokai Yang. Since the function of the institutional environment in the analytical framework of new structural economics is not to determine the set of production structures, but to realize the optimal production structure determined by the structure of factor endowment structure through transaction costs, in terms of policy practice, new structural economics could only explain the rapid growth rate of China’s reform. and opening up for 40 years, and cannot identify when China should again undergo an institutional transformation in order to achieve the timing of an advanced economy eventually.