Provincial Economics Dynamic Efficiency Of China:Based On AMSZ Criterion

It is important for macroeconomic regulation and regional economy to accurately grasping the tendency of economic efficiency. China’s economic growth has always been dependent on investment. Were China and every Province’s investment-orientedeconomy dynamicallyinefficient? Based on the overlapping generation model and AMSZ rule, we tested and analyzedeconomic dynamic efficiency on 31 provinces from 1990 to 2012 of China, we concluded that:Firstly, Chinese economy was dynamically efficient on the whole. There were great differences about economic dynamic efficiency between different provinces, especially in western provinces.From the results of empirical analysis, we can see thatit was negative correlation between the capital investment and the net gains since the 90’s, and they present the symmetry change tendency. About 17 provinces’ economy more than half of the year were dynamically efficient and most of them were in middle and eastern region, 14 provinces’ economy more than half of the year were dynamically inefficient and most of them were in western region. The provinces with dynamic efficiency rising were Beijing, Shanghai, Zhejiang, Chongqing; The provinces with dynamic efficiency fluctuating were Jiangsu, Shandong, Guangdong, Anhui, Jiangxi, Hubei, Sichuan, Guizhou, Shanxi; The provinces with dynamic efficiency declining were Tianjin, Hebei, Liaoning, Fujian, Shanxi, Jilin, Heilongjiang, Henan, Hunan, Neimenggu, Guangxi, Yunnan, Xizang, Gansu, Qinghai, Ningxia, Xinjiang.Secondly, The most significant factors of economic dynamic efficiency was Investment rate and regional industrial structure. In addition, the fiscal decentralization of regional government, education level of labor, utilization of foreign capital also had effect on economic dynamic efficiency. More specifically, the investment rate, utilization of foreign capital, fiscal decentralization of regional government had a negative impact on economic dynamic efficiency; The proportion of the tertiary industry, education level of labor had a positive impact on economic dynamic efficiency.Finally, according to the results of this research, we put up some suggestions, including Stabilizing economic growth through investment in short term; transforming the investment-oriented pattern of economic growth in the long term. Optimizing industrial structure. Changing assessment method of officials. Strengthening the education and training of talents; Coordinating regional economic development; Speeding up the reform of "supply side", transferring and eliminating backward production capacity; Promoting science and technology turning into productive forces.