A Study On Economic Growth In Heilongjiang Province Based On Endogenous Growth Model Including Capital And Knowledge

At initial stage, Heilongjiang Province came to be a major industrial base with the advantages of resources, relying on the large investment from the state and the highly centralized planned system. However, since opening up and reform of China, the adverse impact presents itself increasingly as a result of pursuit to quantitative expansion. Meanwhile at the restrict of resource-shrinking, backward technology and equipments, and other factors, Heilongjiang Province fell into the recession period due to the loss of investment promotion from national key project and protection from the planned economy. With the lower tempo than the national average, the status of Heilongjiang Province slides down quickly in the regional economic structure. Now it loses the competitiveness most fleetly among the central region. Recently, Heilongjiang Province stands on transitional difficult ground from the previous recession to new innovation, and lots of embarrassments are posed in front of its face. It is urgent affairs to make a profound analysis to the reason and adopt effective countermeasures. The paper also has great reference to economic growth studies about other undeveloped areas.This paper summarizes the historical course of Heilongjiang Province covering the saltatorial start, preponderant status and rigorous winter, and analyzes the actuality and existent problems considering five aspects- industrial structure, overall economic growth, quality, demand factors and knowledge level. According to the actual situation of Heilongjiang Province, it sets up the simple endogenous growth model including both capital and knowledge, which portrays the common qualification of the economic system to steady-going state and the dynamic diverse process of capital and knowledge. Based on the simple endogenous growth model of Heilongjiang Province, it confirms the steady-going state and moving track of capital and knowledge in Heilongjiang Province with the actual historical data. One principle result emerges from the paper: raising the growth rate of capital and knowledge is an effective way to achieve stable economic growth. Aiming at the conclusion from above qualitative and quantitative analysis, this paper also proposes countermeasures and advices including financing, knowledgeable and talent strategy.