Dynamic Analysis Between Capital Transfer And Economic Growth

Economic growth is the premise condition of social development and politics stabilize. Probing wellhead of economic growth and adopting measure to release productivity is the problem that the theory boundary always shows solicitude for. In recent years, it has been drawn more and more attention about that the studies to the effect of capital transfer of the dual economic system to economic growth. In this paper, we establish an endogenous economic growth model including capital transfer. We get capital transfer endogenous and discuss the internal mechanism between capital transfer and economic growth. The main content is depicted as follows:In the first chapter, we introduce the background and the current situation between capital transfer and the economic growth of a dual economic system simply.In the second chapter, some basic concepts about dynamic optimization and endogenous economic growth are introduced, which constitute the foundation theory of this paper.In the third chapter, by absorbs the idea of endogenous growth theory, we establish an economic growth model with endogenous capital investment, towards the agricultural department in the dual system. By using the method of dynamic optimization, we get a two dimensional dynamic system, than analyze this system in order to get the condition which can make the system stability. Finally, the internal mechanism between capital investment of the agricultural department and economic growth is discussed.In the fourth chapter, the research scope extended to the entire dual economic system. By discussing the economic growth of the agricultural department and the industrial department, and the consumer behavior respectively, we establish a dual economic growth model with endogenous capital transfer. Than discuss the capital accumulation rate and the growth rate of consumption through the method of dynamic optimization and Hamilton equation. Finally, we analyze the growth path and symmetric equilibrium of the model.