A Study On The Path Of Economic Growth In Oil And Gas Rich Area

Since the mid-1990s, the "resource curse" has become the mainstream view when studythe relationship between natural resources development and economic growth, and thescholars show strong interest in it. Since the study of Auty, many economists have maderesearch to it. Some study the formation mechanism of the "resource curse" trap, and theothers make empirical research to check whether the proposition of the "resource curse" existsor not. Although these studies reveal the impact of resource development, technologicalprogress, resource taxes and other factors to economic growth, but they all ignore the fact thatthe role of government spending in the economic growth model. In fact, government spendingis one of important factors that can infect the economic development besides human capitaland technological progress that can not be ignored, through public investment in infrastructureand other aspects government spending can form public capital.We extend the Barro Model to establish a three-sector endogenous growth model. Themodel includes three sectors: the manufacture sector the natural resource extraction sector andthe government sector. Through the market dynamic equilibrium analysis and comparativestatic analysis and based on some assumptions, we deduce the mechanism of productivegovernment’ taxation and expenditure arrangements on economic growth in oil and gasresource-rich areas and the corresponding theoretical propositions. Finally, the paper putsforward some policy proposals on how the government in resource-rich areas arranges theirtaxation and expenditure.Energy industry is the pillar industry of Shaanxi and it plays an important role in theShaanxi economy development. Based on the above analysis, the paper makes the empiricalanalysis of the Shaanxi. Then give the following specific recommendations for theformulation of the Shaanxi government taxation and spending arrangements and theireconomic development policies to provide. Firstly, relying on major projects to increase thedegree exploration of oil and gas; Secondly, integrate the industry resources, optimize theindustrial layout; Thirdly, accelerate technological innovation, cultivate high-quality talent,and promote the development of petrochemical industrial; Fourthly, strengthen policyguidance.