China From 1987 To 2004 R & D Investment And Economic Growth Empirical Analysis

The problem of economic growth is always an important project of economic theory research. Many scientists have spent much time and energy in exploring the cause of economic growth. In respect of the empirical research, we think the main disfigurement roots in the fact that researchers made use of the neo-classical model of Solow rather than to verify actual endogenous growth theory. We tested the relation between R&D devotion and economic growth. In general, technological innovation is the deep cause of economic growth. And technological innovation is on the base of R&D devotion. Moreover, the correlation between R&D devotion and economic growth is different from each country because it is different for the development and external environment of each country. Therefore, it's valuable for the reasonable contrive of develop strategy of one country or area to analyze the inherent mechanism and exhibition form with the material instance of R&D devotion and economic growth in one country or area. The thesis is used to verify this kind of idiographic nexus through one country, China, with the time series data from the year 1987 to 2004. It seems that there is some nexus between R&D devotion and economic growth in the long run. We use Co-integration test, ECM and Granger test to verify this kind of nexus.The configuration of the thesis is as follows:In chapter 1, we simply describe the existed research fruit about the R&D devotion and economic growth based on the existed literature.In chapter 2, it is focused on the method explanation of empirical investigation on the relation of R&D devotion and economic growth. We give the date used in the thesis, the method used.In chapter 3, we do the unit root test. Then, we estimate the ECM and make the Granger test. Furthermore, we explain the test result so that we give the proposition.In chapter 4, we describe the long term nexus between R&D devotion and economic growth. Furthermore, we give the next-step analysis plan. And we make theconclusion on the basis of the result of model estimation as the end of this thesis.