The Positive Research Of Technical Efficiency In The Economic Growth And The Growth Cost In Inner Mongolia

In the recent years, the increasing growth of Inner Mongolian economy arouses the special attention in the whole nation. However, what is the actual situation of the Technical Efficiency in the economic growth and how about the cost of the economic growth? Therefor, the paper analyse the Technical Efficiency,the connection between the Energy Source yield and the economic growth, and the cost of the economic growth concretely. First of all, this paper estimates a production function of Inner Mongolia and calculates the Technical Efficiency by applying the Stochastic Frontier Approach according to last nine years relevant data. The results indicates that he Inner Mongolia economy is in a state of low Technical Efficiency, even equally without Technical Efficiency and the obvious gaps exist among different regions during the years from 1997-2005.Then the differences of the Technical Efficiency result in the differences of the economic development. And from the result of different periods, the variational trend of the Technical Efficiency is degressive. While according to the analysis of the TFP, the TFP is low generally during 1989-2002, besides 2003,it is high .Maybe because of the high contribution rates that are Technique, knowledge, governmental behavior and the institutional factor. While until 2005,the TFP decline the 4 percent. This result is consistent with the high capital investment。Therefor, Technique, knowledge and other institutional factors are displayed falling. The paper chooses the year time sequence between the Energy Source yield and the economic growth in order to validate the equilibrium and the cause and effect correlations between them. By applying the latest econometric production—Co-integration Analysis and the Granger cause and effect test analyze the correlations between the Energy Source yield and the economic growth. We can conclude that ln yt and ln xt are co-integrate during last 21 years from the long-term equilibrium equation. Then the Granger cause and effect test indicate that the Energy Source yield is the Granger Cause of the economic growth, that is to say, the Energy Source yield can accelerate the economic growth. Hereby, this paper analyze the cost of the economic growth and compute the cost of past 21 years. According to the statistical data of direct and indirect cost , the whole cost is degressive and it just show us that the cause of the descending Technical Efficiency. Finally, founding a low cost growth model in order to estimate the cost coefficient and the cost is 2.2 times than the growth. This data is far more than the other proportion. Therefor we must do lots of work and for its reliability.