Soft Input Quality, And Regional Economic Growth

Since the reform and opening up, the miracle of economic growth has occurred in China. And tremendous amount of research results on economic growth were presented at the same time. In sharp contrast, the researches on the quality of economic growth were only scattered in the speeches of leaders and a few works. In this dissertation, the analytical framework for the quality of economic growth was constructed based on soft input and related theories. The researches on regional comparison were carried out, and the empirical test of theories was made. It was believed that the meaning of the quality of economic growth involves not only the equal opportunities of acquiring education, the equalization of income and distribution, the increase in the ability of government administration and so on, but also the efficiency characteristics, which are more important, including the persistence and harmony of growth, and the regulation for the issues of resources and environment, etc. In more than thirty years since the reform and opening, remarkable differences presented between the economic development in Gansu and Zhejiang province, so the comparison between them is representative. For empirical test, the contribution rates of soft input of two provinces were calculated using incremental input-output method, the capital input elasticity and flexibility of labor input of the two provinces were measured by regression analysis, and the Total Factor Productivity (TFP) of the two provinces over the years were calculated by using Cobb-Douglas production function. Through the comparison of the data about the quality of economic growth in two provinces, Zhejiang and Gansu, the different characteristics of economic growth performance, economic structure, welfare increase, energy indicators, environmental conditions and so on between regions were analyzed. The ideas and strategies to improve the quality of economic growth and change the mode of economic development were proposed.The investigation on the integrated policy input indicated that the economic growth in both Gansu and Zhejiang were affected by the policy input. The private economy was developed in Zhejiang Province with a higher proportion of non-public economy, so the economic growth was affected by the reform of property rights significantly. While non-public economic developed slowly, and had a lower proportion in Gansu Province, therefore it had little effect on economic growth. With regard to the integrated science and technology input, both science and technology input and education investment had a significant effect on economic growth. Scientific and technological advances would promote innovation, which is the main driving force and source of economic growth; while education would raise the regional level of human capital, which was endogenesis and externalities and would promote the accomplishment of the economic growth of increasing returns to scale. The empirical results indicated that science and technology input and the increase of the level of human capital via education had significant effect on economic growth in both Zhejiang and Gansu Province. As for employee enthusiasm, the employee enthusiasm had an effect on economic growth, which was affected by institutional environment, especially property right and incentive system. By reasonable arrangement of the systems, the employee enthusiasm, and consequently the productivity would be raised effectively.The study showed that great difference existed between the quality of economic growth of the two provinces, Zhejiang and Gansu. The quality of economic growth of Zhejiang was superior to that of Gansu. The results of theoretical analysis were supported by the comparative study on whether the comprehensive policy input, integrated science and technology investment or the input of employee enthusiasm. In a long period from now, the soft input factors are important for the intensive use of resources, the improvement of ecological environment and the maintenance of the steady and rapid economic growth. In order to promote the improvement of the quality of regional economic growth, it is needed to take the following measures:①to raise the level of regional integrated policy input, increase the effective institutional supply and change the regional policy input;②to change the economic systems, promote the process of market and perfect the reform of property right system, to achieve the ownership forms with clear property rights, clear rights and responsibilities, and to improve the economic efficiency greatly and promote the rational and effective allocation of resources;③to raise the level of educational investment and speed up the formation of human capital, to improve the education system by taking various measures and optimize the existed educational resources, to promote and guide the investment of various society forces in education, and to establish and perfect the life-long education system;④to enhance the input of employee enthusiasm and improve the incentive system, and to establish a fair, reasonable and effective incentive system and income and distribution system;⑤to change the functions of government, and to avoid the direct intervention of the executive order in the market to the greatest extent;⑥to adjust the industrial structure promote the transfer of industry;⑦to raise the energy efficiency and promote the reduction of the overall level of energy consumption of economy;⑧to protect the ecological environment and promote the coordinated development of the economy, society and ecology.