Conclusion of Quantitative Analysis of Institutional Framework of China and how it Impacts the Development

        China is a emerging market and has considerable potential for growth and development. The economic institutes of the country are not providing for the efficiency of economy. In this regard, it is essential to reform the institution systems of China in order to enable the country to become a 21th century’s economic power and participate in the global business. In this way, the economic freedom can be assured along with the legal protection of the property, intellectual property rights, financial stability, contractual rights and law for the protection of individual. Moreover, it is also important to curtail the widespread corruption by the legal, economic and administrative framework. It is also important to ensure the reduced bureaucracy, increase transparency and encourage innovation, entrepreneurship, capital formation and overall development of the county.

        The core focus of this research is to evaluate the impact of the institutional quality on the performance of the development of China. Following this, for this research the six governance indicators are used to measure governance effectiveness in China. Moreover, the time series data from 1993 to 2016 is used to discuss the research objectives. On the base of the research it is found that in the development of China the factors that play considerable role are; rule of law, political stability, government effectiveness and corruption control. However, the voice and accountability and the regulatory quality are found to have insignificant impact in the development of China. From this research, it is found that the Chinese government need to develop reforms and policies for the better resources allocation. Likewise, there is need to strengthen the rule of law with an aim to protect the right s of the people living in the country and linked with the country.

    However, China have made great improvement to control corruption but still corruption is an issues in china therefore to there is need to develop rules that do not let the people to misuse their authorities and sources. Moreover, the key of China’s success in recent year is the political stability, therefore, to sustain the country’ development the should  ensure the government stability. Overall, for better development, the policy makers should develop policies that reduce the corruption and develop new opportunities for the people to improve their lives.

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