The Impact Of Factor Input On Economic Growth Mode

Domestic research has basically reached an agreement on China's economic growth mode,that China's current economic growth is mainly driven by the extensive mode of growth,and the role of technological progress is not obvious.Neo-classical economic growth theory believes that,without technological progress,it is difficult to bring more per capita capital and per capita prodcution simply relying on the increase in capital intensity alone.Therefore,taking the intensive economic growth path and making technological progress contribute more in economic growth is the proper direction for China's future economic transformation.As the beginning of the chain of economic activities,factor input involves the key issues of “depending on what” in economic growth.And factors' size and structure also determine the ways and means as well as the mode by economic growth.However,the misallocation of factors in the current operation economy has led economic growth to deviate from intensive economic growth track,and the excessive use and dependence of material elements did not achieve the goal of catching up,on the contrary,it has led to lower technological innovation,slower industrial upgrading and a series of other growth problems,which directly affect the improvement of residences' welfare and sustainability of China's economic growth.Based on this,this paper first examines the influence of capital and labor input on China's economic growth mode,finding that the increase in capital per labor has greatly contributed to the improvement of China's economic aggregate;but when putting the variable of economic growth mode into the same model,the impact of the increase in capital to labor on the mode of economic growth is no longer significant.In recent years,a prominent feature of China's factor investment is the faster formation of capital relative labor factor,and the misallocation effect is becoming more and more serious,which has an important impact on the economic growth mode.When putting together the capital misallocation and the labor misallocaiton with the way of economic growth in the same framework,the result turns out to be that the capital misallocation exerts a more significantly negative influence on China's economic growth mode.Synchronising the overall misallocation to characterize the whole factors' disuses in China with the capital misallocation and labor misallocation,the result shows that the overall misallocation significantly suppresses the intensive economic growth mode of our country.The quantile test shows that with the intensification of economic growth,the influence exerted by factor misallocation on economic growth mode tend to be more and more obvious.The heterogeneity tests of the whole sample show that regions located in inland,marketization and opening process lagging areas experience more obvious negative impacts of misallocation of factors on economic growth mode.Further mechanism test shows that factor misallocation,by hindering China's optimization and upgrading of industrial structure,inhibiting technological innovation ability,and blocking firms from participating in international competition and cooperation process,leads to the extensive mode of economic growth.Therefore,in the background of economic transition,speeding up the process of factor marketization is an important way to help China to cross the middle income trap and promote the intensification of economic growth mode.