Elements Into The Economy Of Regional Economic Development

From time degree of latitude, the development of regional economy manifests economic growth, the development driving force is agglomeration, and the finial embodiment of agglomeration is factor agglomeration, therefore this paper focuses on factor agglomeration.Although input of substance production factor is the basis of social production and reproduction, more factor input quantity are not better, because factor among the region also have crowded situation, and thus will decrease factor utilize efficiency. In the production process, factor input has certain quantity proportion relation, this kind of proportion relation is in a dynamic state, if we can grasp the law of quantity proportion relation during the dynamic state, which has important signification to enhance factor utilize efficiency. The main factor which decide the factor input proportion relation is marginal rate of substitution, while production technical level decide the substitution rate.Therefore this paper uses to measure the technological progress level's indicator-the total factor productivity as standard. Applying system clustering method, economy development situation of some provinces in the country are divided into four categories according to technological progress situation. Subsequently, analyzes every category's two variables such as factor input proportion and economic growth rate .Finally, obtains the optimal factor input proportion relation using parameter method.