Demonstration Analysis And Policy Suggestion Of Economy Growth Factor Of Chongqing

Economic growth is a main subject which is concerned by all the countries as well as regions throughout the world. Among various modern economic growth theories, the analytical method of the total factor productivity (also known as TFP), introduced by American economist Solow, is the first ever to analyze capital,labor and other elements(total factor) of economic growth and further set up neo-classical growth model. As this theory is introduced by Solow who is a main figure of the neoclassical growth theory.Thus it got its name as "Solow Extra Value Method".Up till now, this "Solow Extra Value Method"is one of the most widely accepted methods of analyzing the total factor productivity.Chongqing is a inland city, and the only municipality directly under the Central Government in west China. On the other hand it is also a perfect miniature of chinese economic development as well as a good representative of some common features of the west China regions economic development. In addition to the strategy foot the overall development of western China,introduced and enforced by the central and local governments, Chongqing has its own target that is to develop the city to the economic center of those regions of the Yangtze River's upper reach by the year 2020.The aim of this essay is to discuss some key factors that affect economic growth of Chongqing by using modern economic growth theories to analyze with the latest economic data of Chongqing economic growth process, especially the period after the economic reform of China.The preface of this essay focuses on explaining the main purpose of this analysis, reviewing some temporary research of both overseas and domestic economic growth. In the second and third chapter, the development of the economic growth theory with econometric theory and its main perspectives are discussed. The forth chapter airs a general description of economic growth circumstances of Chongqing, analysis economic growth and comparisons are made of between figures of the national average and other provinces, Comparisons are also made of the general circumstances between three local economic regions. With all these analysis's, some features of economic development and industrializing process of Chongqing are portrayed. The fifth chapter analyze economic development data of Chongqing acquired by using econometric theories. through setting up the model of the economic growth of Chongqing, Analyze respects such as material capital investment, labor force investment, manpower capital investment, system factor,etc.that contribute to the economic growth The results, examine to its relevance, and has explain the result of calculation.The results showed: Variables LNY,LNK,LNL,LNH,LNI level series and 1st difference are non-smooth ,but 2st difference is stable,so these variables is 2st difference stable series,which could further test the Co-integration relationship between the variables. For the long time,Between GDP growth and material capital investment,labor force investment,manpower capital investment,system factor of Chongqing exist unique Co-integration relationship, namely they exist long-term stability of balanced relation; For the short time, material capital investment, labor force investment, manpower capital investment, system factor are common to promote economy growth.Then, the sixth chapter mainly concentrated on the analysis of the effects caused by elements,such as material capital devotion,labor force devotion, manpower capital devotion,as well as system factor on economic growth of Chongqing. And some counter measures are proposed accordingly. Finally, the seventh chapter, as the ending of the whole essay, briefly sums up all the main perspectives stated in this essay.