The Empirical Study Of The Relationship Between The Structure Change And Economic Growth In China

This paper aims to study the relationship between the structural changes and economic growth in China since the reform and open policy of 1978.On the basis of studying the structural change in the process of economic growth in the developed countries, I analyzed the structural changes in the three industries of China in this paper, and using the analytical methods and tools of the econometrics to discuss the relationship between the structure change and economic growth. The empirical results show that:(1) There is a two-way Granger causality between the industrial structure change and economic growth. (2) The third industry makes the largest contribution to the economic growth; the second industry takes the second place, and the first industry take the last place. (3) The contribution to economic growth of the first industry, industry, the building industry, the financial industry and other industries is significant, but transportation storage and the postal service, the wholesale and retail sector, the accommodation and restaurant industry and the real estate industry is not significant. (4) The first industry influence economic growth through the influence on the scale of production and labor efficiency; The second industry has a positive effect on the scale of production, and influence economic growth through the influence on the labor efficiency and capital efficiency; In addition the third industry has a negative effect on the scale of production, and can also affect the labor efficiency and capital efficiency. (5) Since the reform and opening up, the economic growth in China is mainly rely on the domestic investment and our country's cheap and rich labor resources but not FDI. FDI is only the external cause for the economic growth, but the domestic investment and abundant labor resources in China is the internal cause of the economic growth.