The Study On Influence Between Non-State-Owned Economy Development And Economic Growth In China’s Western Region

At present, there is a large gap between the level of economic development of eastern and western china. One important reason for this is the existence of the difference between the degrees of development of non-state-owned economy in two regions. Therefore, it is practically significant to study on the development of non-state-owned economy influencing economic growth in china’s western region.This paper introduces three variables-the number of private enterprises, the scale of private enterprises and the number of individual business, to work as explaining variable on the basis of comprehensive analys is of economic data of non-state-owned of china’s western region and then forms theoretical model based on Cobb-Douglas production function model. Meanwhile by using the date of 12 provinces in western region of china from 2007 to 2013 to empirical test, we can find that: In the three stages of economic development low stage, middle stage and high stage, the amount of private enterprises and individual business have a promoting effect on the economy growth. However, this effect has not changed a lot with the growth of economic development. That is, in the middle and high stages of economic development, the effect of promoting the economic growth by develop the amount of enterprises has not any apparent difference with that of low stage. Compared with the number of enterprises, the scale of private enterprises has shown its great change in the effect of promoting the economy growth with the improvement of economic development. The effect of the high and middle stage enterprises have on economic growth is respectively double and six fold that of the low stage enterprises. So, western provinces should make use of the divers ity that exists in effect of different factors of non-state-owned economy on economic growth on the basis of their respective stage of economic development to formulate different strategies to promote economic growth.At last, aiming at some problems existing in the development of western non-state-owned economy, some suggestions are given. Firstly, change mind, non-state-owned should be given priority support to ensure its development. Secondly, adjust measures to local conditions and take different development strategies. Thirdly, innovate the development mode and find the suitable way. Fourthly, pay attention to cultivate and attract talents, and promote economic development in this way.