Abstract：
This paper is an extension of multi-sectors endogenous growth model including capital based on the model of Aghion and Howitt (1999). It sets institution, endogenous human capital and technological innovation into a unified analysis framework for the first time, and tests the effects of institution, capital accumulation and technological innovation on the long-term economic growth. The results show that long-term economic growth not only depends on the institutional quality and technical innovation, but also depends on capital accumulation and family preferences. The long-term stable equilibrium of positive growth rate only occur when the institutional quality reaches a certain level, and the improvement of the institutional quality will improve long-term economic growth rate when the equilibrium existing. In addition, government tax and subsidy policy can also affect the long-term economic growth. This paper aims to provide theoretical support and policy suggestions for the revival of China’s reform.
2014 
