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This study reviewed the formation and change of the two-port policy divided into the formation stage(1985-1994) and changing stage(1995-2007) to explore the mechanism of institutional change. The analysis identified that the two-port policy were constructed and changed by informal institutions, the formal institutions, and the policy actors influenced by contextual environments. Policy actors played an strategic role in the formation and change in the two port policy process: strategic act of president and maximizing act of bureaucrats in the formation stage; strategic act of president, maximizing act of bureaucrats, and rent-seeking act of private company in the changing stage. The process of policy change showed that pre-existing institutional elements were layered with new institutional elements. The two-port policy in the changing stage included both hub-port idea as growth-oriented industrial policy and balanced-development idea as redistribution policy. This shows that there is a path-dependency in the change of the two-port policy. The two-port policy can be well understood as the interaction among institutions and policy actors in the policy process.