Abstract: For a long time, there are two tendencies on how culture affects economic growth：One is the direct impact that the culture itself that contribute to economic growth. The other one is the indirect impact that culture affects institutional transition, and the transitions of institutions have a major impact on economic growth. The paper argues that culture affect economic growth that is through institutional transition. This paper reviews the general theory of institutional change, cultural and institutional transition relations theory and regional institutional change theory, On this basis, the paper given cultural transmission mechanism for institutional transition, and the overall framework on cultural impact institutional transition.