The Factor Substitution In China's Economy Growth: A Perspective Based On The Theory Of Advantage Of Backwardness

In the world economic history, there is one kind of phenomenon: In the process of industrialization, some late-developing countries completed their industrialization with shorter time than the early-developing countries. They caught up with even surpassed the early-developing countries. This kind of phenomenon was summarized as"advantage of backwardness"by some economists. The theory which is used to explain this kind of phenomenon is called"the theory of advantage of backwardness". Many scholars conducted thorough research in this field after the theory was proposed. Especially with the successful economic development of East Asia and Latin American, the theory was used to explain the economic development in Japan and South Korea. Our country is the biggest late-developing country. So the research of this theory takes very strong practical significance.The dissertation concluded as following on the basis of empirical analysis. First, there is no significance of backward- growth in the low-income countries because of the bad conditions, though the gap between the low income countries and the developed countries is biggest. Second, the backwardness can explain the economic growth in the low-middle -income countries. Third, the economic gap can not explain the growth in high-middle-income countries because the gap is small or they have completed their industrialization. That is to say, the advantages of backwardness in late-developing countries are latent but not realistic. The realization of the advantages of backwardness is determined by many factors, such as technique, capital, institution, human resource and economic structure. The late-developing countries must improve their social abilities which are contained in the factors mentioned above to realize the advantage of backwardness in their economic growth. China is the biggestlow-middle-income country. It is necessary to use institutional substitution to improve our social ability to achieve backward-growth.The innovations in this dissertation: First, different countries can obtain different backward-growth. The low-middle-income countries can obtain more backward-growth and China is among this kind of country.Second, the advantage of backwardness is dynamic and relative. The late-developing countries must consider it in making policies which influence the realization of the advantage of backwardness.Third, it analyzed the stage of technique in China and proved that the reasonable technical policy is accelerating independent innovation based on the development of simulating innovation.