The Correlation Analysis Between Economic Growth Rate And Growth Efficiency In China

Economic growth,as a prerequisite for the existence and development of society,has always been an extremely important issue in the study of economic theory.From the birth of economics to the present,economists have always kept on studing how to maintain sustained economic growth as the continous pursuit of their own research,and thus formed different schools of economic growth theory.Since the reform and opening up,china's economy has maintained a rapid growth.However,considering the actual conditions of our country and combining with previous studies,the economic growth in our country mainly depends on cheap labor and large-scale capital investment.With the problems in the process of economic growth,we have to turn to thinking about the efficiency of economic growth.Therefore,this article combines the economic growth rate with economic growth efficiency for analysis.By referring to a large amount of economic literature and drawing on the achievements of many experts and scholars about economic growth and economic growth efficiency,this paper studies the element factors which affect china's economic growth rate and efficiency,concluding previous studies about the total factor productivityIn order to analyse China's economic growth rate and efficiency,this paper firstly estimates China's economic growth rate and its trend from 1978 to 2015,analysing economic growth rate by dividing it into different periods.Secondly I regard the total factor productivity as the variable to study China's economic growth efficiency,using the national and provincial panel data of China from 1978 to 2015 and dividing it into four regions.I stake the fixed capital stock and labor as the input variables and GDP as the output variables,using the nonparametric Data Envelope Analysis model and Malmquist productivity index to evaluate China's total factor productivity growth.Meanwhile,TFP was divided into technical efficiency changes and technological progress changes,in order to estimate the correlation between economic growth and economic growth efficiency.The study found that from1978 to 2015,the total factor productivity in China fluctuated and generally increased.The technical efficiency index,composed of two indexes,pure technical efficiency and scale technical efficiency,generally showing an increase trend,indicates that the factor utilization rate has been improved.However,the rate of technological progress increases more slowly than the technical efficiency,indicating that China needs to improve its capability of independent innovation and rely on technological progress to promote economic growth.In terms of TFP,there is still a gap among different regions.The efficiency of economic growth in the eastern region is still at the leading position nationwide,mainly driven by technological progress,while the development in the western and northeastern regions relies on the improvement of technical efficiency,indicating that technological progress is the main source of china's economic growth.Improving the technical efficiency level is a potential engine for China's sustained and healthy economic growth.Based on theoretical analysis,this paper uses the model of Vector Auto Regression to conduct a cointegration test and Granger causality test on the correlation between economic growth rate and economic growth efficiency.The study finds that they have a positive relationship.The rate of economic growth is the Granger reason of the efficiency of economic growth.The efficiency of economic growth is affected by economic growth.Therefore,according to concrete conclusions drawn from the empirical analysis and the actual situation in China,we make corresponding policy suggestions and provide some references for the government to formulate economic policies.