A Research On Economic Development Quality From The Perspective Of Multidimensional Cost

In recent years, with the sustained and rapid development of Chinas economy, more and more experts and scholars at home and abroad have begun to focus on China’s economic development mode, they regard the rapid development of China’s economy as China miracle, but these flattering words cannot make us ignore the environmental pollution, the costs of production factor underestimated, all kinds of social injustice and other issues which caused by the rapid economic development. These social and economic issues behind reflects the shortcomings of China’s economic development model, therefore, this article will try to study the quality of China’s economic development from the perspective of the cost.According to Porter’s theory, the economic development of an economy generally go through four stages, namely the factor-driven, investment-driven, innovation and reform-driven and wealth-driven, etc., while China is in the stage of factor-driven and investment-driven economy at present, the economic development model of this stage can play a huge role in the short term, but in the long term it is not sustainable.In this paper, the quality of economic development is comprehensive considered from the economic, ecological and social costs which caused by the current China’s economic development model. For the sake of rapid economic development, the economic development across the country all aligning with investment-oriented development model, local governments attract foreign businesses and investment everywhere, and leasing land cheaply, which not only deprive farmers’ real land usufruct, but also bring mass incidents which will affect the social stability. In the process of rapid development of economy, rent-seeking and corruption like malignant tumors are eroding the entire economic system, not only because they do not produce anything of value, but also consume society’s resources which should have been invested into production, and these resources being consumed are system cost in essence, they are also not been accounted by GDP, so they will naturally affect the comprehensive evaluation of the quality of economic development. For the sake of rapid economic development, we abandoned the fresh air, clear water and healthy food, which are bringing ordinary people haze surprise, river pollution and the spread of new types of diseases, etc., and the environmental costs represented by emissions of greenhouse gases has never been counted by the official GDP account.For the sake of rapid economic development, due to the imperfection of national income distribution system, this will lead to more development with more unfair, and this situation is comprehensive, for example, large regional level, intermediate level between the urban and rural areas, and small to unfair distribution among the different industries. These unfair distributions are not conducive to stimulating domestic demand, but also will affect the balance development of the national economy and social stability; these unfair issues as social costs should be considered into the quality of national economic development. As time goes on, the capital sources of our economic development model are shifting from single to multi-era. The sources of investment funds are also shifting from neither debt nor internal debt to overall debt and attract foreign investment, these capitals not only promote the rapid economic development, also make us to think more about the real national wealth, if the introduction of foreign investment only brings the pollution and take away its country’s GNP, then this is not conducive to the accumulation of national wealth.This articlepoints out the hidden costs or not been accounted costswhich appear in the process of economic development, and that if these costs are not been accounted, we cannot account the quality of our economic development more objestively, the article concludes that the root cause of these costs are market imperfections and reform is not in place. Markets hould play a decisive role in environmental pollution and other investment-oriented development model,by deepening reform to eliminate system deficiencies, achieve a relatively fair distribution of income and eliminate rent-seeking, only in this way, the economic development quality of our coutry can be higher.