A Study On Endogenous Growth Of Economic Transition In Resource-based Region

Resource-based areas, as a country's basic energy and important raw materials supplier,which greatly boosted the country's sustained economic growth and social progress. However,since the1950s, with the gradual depletion of natural resources, as well as new technologicalrevolution brought by upgradeing of industrial structure, resource-dependent mode of economicdevelopment in resource-based regions suffered a serious blow, which lead to a slowdown ineconomic growth, declining competitiveness, increasing in unemployment and poverty, the heavyresource costs, environmental costs, and the cost of human lives and the capacity of subsequentdevelopment. Therefore, how to get rid of the resource-dependent growth to become the subjectof community focus.Based on the literature research and the realistic situations, this paper mainlydiscuss the economic transition means and the growth drivers of the resourced-based areas. wehope that through the search, it could strengthen the endogenous development capability andprovide the effective guidance and realistic motive forces to strengthen the ability of thesustainable development, thus make the economic development mode transform from theresourced-based to the endogenous drive.It is extremely significant to the regional economicdevelopment, the resources security and the people's livelihood welfare.The main content of the paper is divided into six parts.On the basis of reviewing theliterature of the domestic and foreign scholars on the resource-based economic issues, this articlefirstly elaborated the theory of sustainable development, economic growth theory, and thedevelopment of institutional economics, and explored their relationship with the resource-basedregional development, laid to the theoretical basis for the further study. Next, the paper analyzedthe economic characteristics, and inherent obstacles of the resource-based regions, laid a realisticdemand basis for the economically endogenous growth. After this, the article analyzed the drivenelements of endogenous growth in the resource-based regional economy as well as the interactionof endogenous factors and mechanism of economic operation. Then this paper built a theoreticalmodel to explore how the mechanism of the endogenous elements to the resource-based economyworks.The case studies analyzed the technological progress, knowledge, innovation, government'ssuccessful experience of transition and development and implications for China. The last part isthe policy recommendations section of the article. On the basis of the above analysis, the paper presents a general and universal policy recommendations. The paper combined with the practiceof Shanxi Resource-based economic transformation comprehensive reform experimental zone, thepaper explored from the transformation of development mode, the dynamic growth, developmentof ideas and financial support.Under the guidance of scientific development concept, on the basis of drawing on usefulpractical experience, the paper used the research methods of combination of theory and practice,combination of empirical and normative, combination of deductive and inductive, and discussedthe major issues of resource-based regional economies in transition and endogenous growth. Themain conclusions are:First, from the reality of the situation, these characteristics in the resource-based areas, suchas the economic structure simplification, industrial structure heavy-duty, the resource economyfluctuation and so on, which constituted the barriers to economic restructuring and developmentof resource regions.But, the not enough investments on the endogenous elements, in the meantimethe crowding out effect of the human capital and employment is serious, and the blockages effectand locked effect of the resources was also severe. These questions caused the endogenous growthpower shortage.That is, resource regions lacked of technology, human capital and factoraccumulation mechanism that promoting economic growth.Second, the resource-based development-driven factors are knowledge accumulation,technological progress, innovation and human capital. Though endogenous technology andhuman capital accumulation technology to improve labor productivity, which promoted outputand growth. On the contrary, the locking effective which resource industry's posperity broughtwill crowd out the education, the human capital, investment, savings, innovation activities andother elements. In addition, it will inhibit the innovation behavior of the entrepreneurs. Thereby itwill hinder the local economic development.Third, this paper based on C-P model introduce the research and development department tothe resource-based enterprise, and construct analysis model.We found that the human capital andresearch will be the main production factors in the resources industries. In addition, the areaswhich have the technology in the advantage will be further upgrade, and it cause transformationof the area industrial and economy. These areas of the technology disadvantage will produce thetechnology progress and improve its economic development. The comparative static analysis ofthe model reveals that, through the human capital accumulation effect, the amplification effect of knowledge creation, the endogenous growth path dependence and the negative effects of intensivemanagement, it will have an effect on the economic operating modes,and support the localcontinued economic growth.Fourth, through the case studies of the relevant transformation and development, we canfound that although the leading industry of the transformation is not the same, the leading thoughtof the transformation is generally consistent, that is the resource-based areas should rely mainlyon the internal factors of the economic system to promote transformation development. Also thegovernment at all levels will play different roles at the transition means, supported fields, themain body of the implementation and so on.Fifth, the paper presents a general idea of endogenous growth in the resource-based economy.It proposed the mechanism of progressive of innovation, promoting technological progress,promoting human capital accumulation and the basic framework and measures of construction ofthe endogenous growth platform and service system. In addition, it proposed measures ofinstitutional innovation and safeguard in the aspect of institutions, taxation, law, property rightstrading. Finally, the paper put forward measures of mechanism about financial support forresource-based economy of endogenous growth.Sixth, aiming mainly at the outstanding problems in transformation, his paper puts forwardthat Shanxi should adjust structure to achieve economic transformation, provide the power of thetransformation depending on the innovation factors, set up the development philosophy relying onthe green development, and provide the power of support relying on financial innovation.And thedesign of the system and policy framework are proposed.The innovation points of this paper are that: first, this paper find the endogenous driveelements of the economic transformation development in the resource-based areas, and analysesthe special interaction mechanism of the drive factors and the resource-based areas.Second, it makes us from the point of view of the regional trade understand the endogenousgrowth mechanism of the resource-based areas, and apply the international trade front theory tothe resources economic issues. This method is a new theoretical tries to the research of theeconomic transformation development.Third, aiming the inner obstacles of the economic transformation and endogenous growth inthe resource-based areas, and puts forward that it is necessary that a thorough reform on approachto development, the development concept, the development direction and impetus to the development in Shanxi. At the same time, we built the path and framework of restructuring,independent innovation, green growth and financial innovation in transition of resource-basedregions.