Institution Change, Government Behavior and Private Economic Development of Pearl River Delta

The development of private economy is a history of institution change. From prohibiting private economy to approving private economy, from admitting the legal position in the socialism market economy of private-run economy to firmly supporting private economic development, all these reflect a process that the government induces private economy to changing properly according to its different phase. This paper reflects on the classic theories of institution change, government behavior and economy development, makes an institution analysis on the development model of private economy of Pearl River Delta, and discusses the developing way of private economy of Pearl River Delta.