Abstract：North's institutional change theory not only explains many aspects using state,property and ideology which Neo-classical economics couldn't explain,but also transits people's perception on the causation among politics,economy and culture in terms of thinking way.His research method synthesizes approaches of social sciences.However,the institutional change theory which based on local observation faces difficulties in interpreting "exogenous forms" of institutional change;Even in interpreting the local institutional change the explainable capability of the theory also faces challenges,since it emphasizes excessively consecutive change pattern but ignores important episodes in institutional changes.Because of this shortcoming,North neglected the differences between non-institutionalized ideas and informal rules.In the critical juncture of institutional change,ideas even instruct the innovation of formal institution,and changes the informal rules.Therefore,in order to explain the institutional changes better,North's theory needs to absorb basic hypothesis of constructivism.
