The Empirical Analysis On The Relationship Between Information Industry And Economic Growth In China

The information industry has become an very important industry apartment of China's economy in the information ages, it has played an very important role in the contributions to the national economic growth. This paper attempts to analysis the relationship between information industry and economic growth, try to find out how does the information industry impact national economic growth.This paper first summarized the research results in domestic and abroad ,defines the basic concepts and theories of information industry and economic growth, then proceeds from theory mechanism aspects including increasing returns, scale economy, technological innovation, traditional industries, regional economic to analysis how does the information industry through its own development to promote economic growth. After analyzing the development of the information industry in China, and gave a brief introduction on the United States, Japan and other developed countries. Based on this research, then use the information industry and GDP data in 1990-2005 to conducting quantitative analysis. In the part of Empirical research, Cointegration theory has been used to test the long-term equilibrium relationship between GDP and information industry. We establishes a vector autoregressive model, and tests the Granger causality of them. On the base of Cointegration we establishes a vector error correction model, by Wald test to analyze the Granger causality of information industry and GDP in short-term and long-term. And the use of impulse response function and variance decomposition are more intuitive to study the relationship between them. The full text of the final summed up the research results, and the corresponding policy recommendations have been lanuched.Through this paper's study we found the information industry promoting the growth of economy in the very functional way. China should set the information industry as a key industry to play its traditional industrial-permeability, various industry sectors to promote the all-round coordinated development.