National And Provincial Economic Growth, Differences In Study (1978-2003)

Aggregation production function is an old, fashionable and questionable study region. In the 18 century, the economists had found that the drive of economic growth lies in capital, labor input and the developing technology, and then they study aggregation production function to analyze the economic growth. In foreign countries, there are so many papers that research the aggregation production function to compare the differences of the economic growth of each region. In our countries, there are many researches, but few about the provincial economic growth.There are two questions about the aggregation production function in our paper, the capital stock and the modifying of the model. It is a very hard and tough works. There is no data for our paper, so the first work is to search data. The two works are an art.Aggregation production function is a useful and powerful tool for the research of economic growth theory. This paper uses the Cobb-Douglas production function of the whole nation and each province to analyze the reasons of economic growth. We make the following conclusions: (1)The speed of capital stock growth and its contributions to economic growth are different among each provinces. General speaking, the eastern areas and midland are higher, but western regions are low. Capital stock is the key factor of economic growth; at the same time, the speed and contribution of labor inputs are small; (2) The standard deviation errors are different among each provinces, and they became smaller after 1993;for capital stock, the developed areas decrease more obviously; and the changing trends of factors' contributions have some differences; (3) Total factor productivity is of importance to economic growth, and its fluctuant character is the nearly same as economic growth rate; Furthermore, there are some differences among each province.Upon the analysis, we think: (1) in the past twenty years, the each province's economic growth depends on the capital input. In the future, our country will still depend on capital input, so, we must make full of the capital and pay much attention to the efficiency of the capital using. (2) The TFP is a very big factor in the economic growth, and it has a very close relation with the economic growth. So, we must pay more attention to the education and technology input, and transfer the form of economic growth.