Path-Dependence and Contract System of China

Path-dependence is a theory of explaining the institutional change in neo-institution economics.There is some kind of inertia during the technology evolvement or institution change in our human society,which is similar to the term of inertia in physics.It means that path dependence forms possibly after choosing a path.According to the basic path-dependence theory,this article analyzed the process in which the contract system has developed from agriculture field to industry field and financial management system in China's reforming course.It is considered that the system pervasion in different fields is also a form of path-dependence and the system transplant is not always successful.