The correlation between the state sector and the private sector

Abstract

In order to successfully transform the economy from the classical growth model that is based on capital and labour
force growth and exploiting natural resources to the new growth model which is combining properly the economic
growth by increasing the amount of various factors with in-depth economic growth for the next period, it is essential to
restructure the economy as soon as possible. In which, restructuring and reinforcing the state sector effectively as well
as encouraging the steady development of private sector; enhancing the co-ordination and surpporting between these
two sectors. The article is going to explain the correlation between the state sector and the private one of the economy
in both theoretical and practicle aspects; analyse the change of this correlation in the practice of the economical
development in various countries; and find out the developing trend of this correlation in the fututre, that contributes
to clarify the basis of the creation a composite growth model with the optimum ratio between these two sectors in the
future.