Law and economics has developed for nearly half a century. And the development of law and economics is not only embodied by successful inter-discipline integration of law and economics and the great impact & integration of the research paradigm of economics on the traditional law, but also has the important effect on judicial practice. By a literature review of this research field, this paper sorts out the theoretical context and evolution logic of subject development and provides domestic researchers with clues to the theoretical exploration of normalization and localization of law and economics. Firstly, it simply states and summarizes the nature, basic theories and research methods of law and economics on the basis of the review and summary of theories and practice of law and economics. Then it sorts out and comments on the localization research of law and economics by domestic scholars in detail, by selecting domestic and foreign research statuses in four fields, the most important and the most concerned, namely property, contract, tort and crime, especially after 1980s. Finally, based on the summary and criticism of the achievements and deficiencies of law and economics, it raises the basic judgment of future development trend of law and economics by combining the evolution trend of law and economics after 1990s.