Study On The Main Factors Influencing Economic Growth In Datong

In order to solve the problem of economic growth in Datong, find the major factor affecting the economic growth and direct the social investment the paper does the research based on the theory of economic growth by choosing the traditional industries and the relatively new industry.The two principal components of economic growth in Datong City are found with the principal component analysis. They are the real estate investment industry and the coal industry. The long-term equilibrium relationship among them confirmed by the way of econometric analysis exists. The cointegration regression model of real estate investment, coal industry and GDP was established and corrected based on this study. The credibility of the model was studied with the actual data from 1990 to 2009. The results show that the reliability is very high and the model is correct. Finally, the influence mechanism is found through the granger causality and response relation based on the constructed model.Through the research, the subject obtained the following results:(1) Long-term balance relationship exists in coal industry and real estate industry in Datong with local economic growth from the cointegration relationship.(2) Through the relationship of causality and impulse response study, in the short term, the coal industry promotes economic growth significantly, but little change in the different lag, and more stable. In the long run, economic growth in the real estate industry has a clear mechanism of volatility and undulating.