Research On The New Low-cost Economic Growth Mode

The existing literature on the economic growth mode shows that, economic growth mode can be basically divided into two categories: extensive and intensive economic growth mode. Based on the studies, we propose new extensive and intensive economic growth mode centered on low cost. Extensive low-cost economic growth mode demonstrates low wage, low land cost and low environment-cost. New low-cost economic growth mode means low relative labor cost of workers, low land occupation and depletion, and low environment pollution. We analyze the disadvantages of the extensive low-cost economic growth mode, and then it points out the transition of intensive low-cost mode of economic growth relying on marketing mechanism. The intensive low-cost growth mode is not just the sustainable growth mode, because the former is the economic-benefit-oriented one, which ignores the ecological benefits and externalities of economic behaviors. So that the transition of the economic growth mode should be the sustainable development style, which regards both technology and institution as the endogenous variables of the economic growth, it not only stimulates individuals or partial development, but also maximizes the social welfare so as to realize the organic oneness of ecological, economic and social benefits.