Lewis’dual economicmodel becomes the foundamental theory of devel opment economicswhich discl osed the source of capital formati on, but its popularizati on is li mited becouse it neglected the fact ors as land, technol ogy and instituti onal arrangement as well as the characteristics of the devel op ing countries . In the p r ocess of China’ s dual economic structure transiti on, rural land and laborsmove into modern urban sectors, and amend the traditi onal Lewis’dual economic model as new parameters entry . And this shows policy revelation below:“Agriculture, Countryside and Farmer”issues can only be s olved by synergy of market power and instituti onal arrangementwhich is p referential for Chinese far mers ; the land instituti onal arrangement encourages the dual economic structure based on rural land p r operty arrangementwhich brings about increasing the transacti on costs from rural sect ors t o modern urban sectors .