Research of Capital Contrubition to Chongqing’s Economic Growth
|School||Southwest University of Political Science|
|Keywords||Economic growth Factor analysis Contribution|
Economic growth factors research is an important issue in national and regionaleconomic development. Since the market economic system reformed, there has beena huge success in economic growth in Chongqing. From1994to2010, the GDP inChongqing has realized a fast, stable, sustainable growth, and the growth rate is in theleading level among all cities in China. In order to find the driving factor of economicgrowth of Chongqing, as well as factors contributing to economic growth, this articlehas done a systematic study about the economic growth of Chongqing. First of all,based on the economic growth theory, this article uses the classical theory ofeconomic growth, neo-classical economic growth theory, new economic growththeory and school system which contain the exploration and research results for thesource of economic growth and then obtained factors that affect economic growth aremainly labor, capital, technology, knowledge and system etc.. Then this article hasdone the status quo analysis of these elements on the basis of the analysis in thecurrent situation in Chongqing. Moreover, it uses the Dennison’s factor analysis andextended the Cobb-Douglas production function to build the model. The modelparameter estimation results show that the impact of the labor inputs, fixed capitalinvestment, human capital investment and institutional change on economic growthof Chongqing City is significant, while elasticity of the labor input and the output isthe largest. Contribution rate of fixed capital investment to output is the highest,while institutional change for the economic growth of Chongqing has played animpediment role (the output elasticity is less than0).Finally, the author finds that high-speed economic growth in Chongqing comesmainly from the large amount of investment including investment in human capitalwhich also makes an important contribution to the economic growth of ChongqingCity. According to this conclusion, the author gives some measures and suggestions topromote economic growth of Chongqing. To assure Chongqing sustain a steadyeconomic growth, the government should increase investment rate and keep in mindto improve investment efficiency. What’s more, increasing the investment in education should focus on improving the quality of education, increasing investmentin research and optimizing the industrial structure. At last, the government shouldguide labor elements which have higher production elasticity to the tertiary industry.