A Study On Economic Growth Quality In China

Economic growth contains two aspects, one is economic growth quantity, the other is economic growth quality. Quantity reflects the speed of economic growth,quality reflectsthe attribute of economic growth .The connotation of economic growth quality includes six aspects. They are efficiency,stability,coordination,distribution,innovation,durative. The efficiency means the output efficiency of economic growth. The stability means the fluctuation degree of economic growth and the deviation to potential output. The coordination means the rationality of economic structure. The distribution means the distribution of national income. The innovation means the function of technological innovation and system innovation. The durative means the ability of resources and environment sustaining economic growth. According to economic growth quality connotation and correlative index, this paper carries on a more exhaustive analysis to China's economic growth quality from the above six aspects.This paper analyzed the efficiency of China's economic growth from three aspects as total factor productivity, investment efficiency at macro-economic level and labor productivity. Compared with developed countries, total factor productivity's contribution to economic growth is not high in China; we find that China's investment efficiency at macro-economic level is low based on incremental capital-output ratio; China's labor productivity is very low. Therefore, China's economic growth quality is not high from the point of view of the efficiency. The fluctuation of economic growth has become smaller since reform and open policy has been put in practice. The cause is the market mechanism substituted the control status of the tradition planned economic system gradually in the national economy; the government might promptly carry on the regulation to the demand according to the market's supply-demand relation. Thus, average growth rate has been improved remarkably. In addition, the paper analysis the stability of growth based on actual growth rate deviation from potential growth rate. Data indicate that the stability of China's economic growth improved remarkably since 1996.This paper analyzed the coordination of China's economic growth from two aspects as demand structure and industrial structure. The main problems of demand structure lie in: investment rate is very high, consumption rate is very low; domestic demand is low, export demand is high. This kind of demand structure increased the cost of China's economic growth. The changes of China's industrial structure are in line with the general trend, but China's industrial structure deviated from international standards models seriously. This kind of industrial structure reduced the efficiency of China's economic growth. The analysis of distribution of China's economic growth showed that the national income have inclined to enterprise and government obviously, the proportion of inhabitant's income in the national income has declined unceasingly since 2000. The proportion of government income increasing means the macro tax burden is increasing. The empirical analysis indicates that the optimal macro tax burden to maximize economic growth is about 20%. Since the economic reform and the opening-up of China, at the same of high-speed economic growth, polarization of the income gap is worsening. It restricted the consumption demand to increase, and consumption demand's insufficient form the restraint to economic growth. In a word, China's economic growth quality tends to decline based on the distribution of economic growth.China's technological innovation level is not high. The empirical study indicates that domestic R&D investment and technology spillovers of foreign country through FDI promote China's technology progress significantly. And import does not promote China's technology progress. Therefore, increasing R&D investment will become the inevitable choice. The biggest power of China's economic growth comes from the system innovation since reform and open policy has been put in practice. Because China's system innovation had reached the certain stage, the efficiency of system innovation of increasing tendency already slowed down, we have to strengthen technology innovation, make technology innovation and the system innovation become the power of China's constantly and high-speed economic growth. The analysis of the durative of economic growth showed that the resource waste and environmental disruption has already reached a very serious degree.The economic losses caused by the environmental pollution takes a trend of rising constantly in our country. Resources amount per capita in China is well below the average world level, the traditional quantity economic growth way was already difficult to sustain.The comprehensive evaluation of China's growth quality showed that the improvement of quality did not keep pace with the expansion of quantity. That is, the rapid expanding of economic scale didn't bring the improvement of growth quality. This had proven the China's economic growth can also be called the quantity economic growth since 1978.Finally this paper analyzed the cause of China's economic growth quality, proposed the countermeasure of improving economic growth quality from five aspects as stability,innovation,coordination,distribution,durative.