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Total Factor Productivity And Regional Disparity In Inner Mongolia: Evidence From 1987-2007

Posted on:2011-09-25Degree:MasterType:Thesis
Country:ChinaCandidate:G P GaoFull Text:PDF
GTID:2189360305991103Subject:Political economy
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Rapid economic growth in Inner Mongolia for eight years, at the same time, inter-regional economic growth gap continued to widen. This dissertation attempted to use total factor productivity growth decomposition method to explain the source of rapid economic growth and the causes of regional disparities, as well as the policy recommendations about the sustainable economic growth in Inner Mongolia.This dissertation consisted of three main parts:(1)The author evaluated the Inner Mongolia's non-equilibrium economic growth with principal component analysis, cluster analysis and GIS software. (2)Using Solow growth accounting formula to resolve the Inner Mongolia's economic growth during 1987-2007. (3)According to trans-log stochastic frontier production function model decomposed the growth rate of total factor productivity (TFP).The TFP growth is decomposed into three parts: productivity efficiency rate of change, technological progress rate, and scale efficiency rate of change. We found the causes of inter-regional productivity efficiency differences through the productivity efficiency equation.Non-equilibrium analysis showed that:(1)Overall level of the economic social development was low in the counties of Inner Mongolia Autonomous Region. The county competition was inferior, and the county economic differences were marked. (2)According to different characteristics of regional economic growth, the twelve cites was divided into three types. Huhhot-Baotou-Erdos region was rapid growth areas and less developed areas were developed slowly.Source of economic growth analysis showed that:Inner Mongolia's economic growth is still investment-led growth model. However, TFP growth was remarkable, the average contribution rate to economy between 29%-38%. Since 2000, TFP contribution to the economy descended.TFP growth decomposition results show that:(1)The "Golden Triangle" region was the highest production efficiency, yet the "Golden Triangle" wings lowest in the region. After 2000 all regions were suffered from different degrees of productivity decline. Emphasis on production efficiency should be improved. (2)The factors which are urbanization, the proportion of secondary industry, local level of human resources and physical capital stock would increase the productivity of the region. The state-owned share of industrial output, the proportion of ethnic minority populations as well as the extent of government intervention in the economy was negatively correlated to the regional productivity. (3)The growth rate of total factor in "Golden Triangle" and "Golden Triangle" wing area was higher than "East Four League" region. Total factor productivity growth was mainly from the technological progress rate, followed by the productivity rate of change. (4)During the 2000-2007, Inner Mongolia's economic showed the high economic growth, high TFP growth and low productivity growth.According to conclusions, made the following policy recommendations:First, increasing the support efforts to ethnic minority areas and backward areas in order to strengthen the hematopoietic function; Second, transforming the economic growth mode, so that Inner Mongolia's economic growth mainly rely on capital growth shifting to technological progress and technical efficiency; Third, increasing the investment to the scientific research, technological development and education, which would improve the level of human capital and strengthen independent innovation capability; Fourth, the Government should reduce its intervention in the economy proper. The region should accelerate the upgrading of industrial structure and speed up urbanization development, as well as develop non-state economy in order to promote regional production efficiency.
Keywords/Search Tags:Total Factor Productivity, Principal Component Analysis, Solow Growth Accounting, Stochastic Frontier Production Function, Trans-log Production Function
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