Research On Economic Growth Of Liaoning Province Based On Solow Model

In 2003,the state proposed a comprehensive revitalization of the northeast old industrial base,the three northeastern provinces ushered in a comprehensive revitalization of the economy.Liaoning Province,as the economic center of the three northeastern provinces,since 2004,GDP growth is much higher than the national average,the highest reached 15%.October 2016,the State Council held the meeting about the revitalization of the northeast region and other old industrial base,and the deployment of the further promotion of the revitalization of the Northeast.At the same time,the economic growth rate of Liaoning Province has been greatly reduced year by year,which is lower than the national average in 2014 and 2015 for two consecutive years.According to the latest data,in the GDP growth in the first half of 2016 rankings,Liaoning Province is still bottom,and the growth rate is negative.How to change the current grim economic situation in Liaoning Province has become an urgent and critical issue.According to the Solow model,in the three major factors of labor,capital and technology,the role of capital in the economy is gradually disappearing.The sustained economic growth will mainly depend on technological progress.Based on the Solow model,this paper analyzes the present economic situation of Liaoning Province from the aspects of labor,capital and technology.Through the research,it is found that Liaoning Province has some problems,including that population is aging,the scale of investment in fixed assets is reduced and the structure is unreasonable,and the technical level is low.In order to find out the key factors which cause the economic slowdown in Liaoning province,this paper analyzes the contribution rate,economic steady state and the relationship between technology and economic growth.The empirical results show that the technical level is the key factors of the restriction of Liaoning Provincial economic growth.According to the results of theoretical and empirical analysis,this paper puts forward some reasonable policy suggestions for the problems of economic growth in Liaoning Province,including actively developing the resources of the elderly,expanding the investment channels,improving the investment structure,and increasing the scientific and technological manpower,financial input and capital Investment,enhance awareness of science and technology.