A Research On The Relationship Between Software Industry Development And Economic Growth In China And Its Regional Differences

The software industry is a strategic and leading industry that plays a key role in the region’s economic development. It has a bright future and can drive other industries to develop as well. As the heart and soul of the information industry, the development of the software industry will help the implementation of China’s "informatization to stimulate industrialization" strategy, rationalization and update of China’s industrial structure, and the transformation of economic development mode to achieve better and faster development. This paper scientifically measures the role of different provinces, regions and the software industry on economic growth, and provides a more accurate understanding of differences in the development of software industry and reasons that cause these differences between provinces and autonomous regions. It is significant for enhancing the status of the software industry, and promoting the development of the software industry of all provinces and autonomous regions.By studying the impact of the development of the software industry on economic growth and its mechanism of action, this paper provides a quantitative understanding of the importance of the software industry in China’s economic development. It can also help make future policies for the development of software industry by analyzing the causes of the differences of the China’s development of the software industry.Firstly, this paper starts with an overview of the research background and practical significance of software industry on economic growth, a review of research progress on economic growth and development of the software industry at home and abroad to clarify the concept and classification of the software industry and analyze current development of China’s software industry. Paving the way for later analysis, it also looks ito the influencing mechanism of the software industry on economic growth, and studies the direct and indirect effects respectively,.Secondly, it builds a panel data model to analyze the impact of software industry on the economic growth of China’s provinces and autonomous regions, tests the co-integration relationship between the development of software industry and economic growth, and gives the panel error correction model. This paper calculates the influence of software industry on the economic growth in all provinces and regions, and uses the Ward clustering method to classify29provinces into three.Thirdly, correlation analysis of the factors affecting the development of the software industry is conducted. An analysis of the causes behind the differences of software industry development between different provinces and autonomous regions can help them make targeted and supportive policies for the development of the software industry.Finally, this paper concludes with a detailed analysis of the influence of software industry in three types of provinces and their regional differences in development. After expounding what the government and enterprises should do for the development of software industry, this paper also contributes some development proposals.