Realistic Representation, Dynamic Evolution and Determinants of Institutional Quality in China

ABSTRACT The paper delves into the role of institutional quality in bolstering China's economic resilience post‐COVID‐19, CITIC‐Entropy. It divides institutions into basic and changeable categories, establishing an index system via the CITIC‐Entropy TOPSIS model. Through Markov chain analysis, a consistent uptrend in institutional quality is observed. Notably, a club convergence pattern emerges, indicating gradual progress with limited leaps. The study underscores the pivotal influence of basic economic institutions on disparities in institutional quality, with a diminishing impact from north to south. By refining the evaluation of institutional quality, the research sheds light on its significance in economic resilience while offering guidance for harmonizing market efficiency with governmental efficacy in policy formulation.