Analysis On The Factors Of China Economic Growth Under The Urban-Rural Dual Structure

After 30 years'reform and opening up, China acquired gorgeous achievement in economic development. The high GDP growth rate becomes the focus of scholars all over the world. On the causes of it, different people hold different opinions, however, on the issue that technology progress, rural labor force flow and government policy can affect economic growth, none show his/her disputation. But most of them neglect several problems listed as below. Firstly, is it right that each unit of technology progress in urban and rural areas brings the same effect on economic growth? Secondly, political support is in fact resource allocation in order, while does the political support necessarily bring economic growth? Thirdly, is the effect of rural labor force flow always positive to economic growth? Fourthly, how the ratio of output in urban and rural areas will affect our economic growth? With these questions, this paper uses quantitative method to analyze the China economic growth in dual structure and get several important conclusions. Firstly, technology progress is important and the effect of urban technology progress is enlarged by output ratio as its coefficient. Secondly, the policies in urban and rural areas should keep in an appropriate rate; otherwise, the deadweight loss will come. Thirdly, the rural labor force flow may produce"labor flow trap", causing a negative effect on economic growth. At last, the ratio of urban and rural output can affect economic growth.This dissertation has five parts. First is a summary of relative theories. By the order of classical theory, neoclassical theory and endogenous growth theory, it introduces these theories one by one. At the same time, it classifies the researches in and abroad, putting forward several questions. In the second part, on the basis of classic growth model, it establishes a new growth model with the presumptions of dual structure, and then uses the macroeconomic data to test the model in the third part. In the fourth one, it analyzes the meaning of the model further, and answers the questions putted up at the beginning of this paper. In the last part, according to the conclusions of this paper, it gives some policy suggestions to the problem concerning about policy coordination, industrial structure adjustment and labor force flow.