A Study On The Dynamic Factors Of Regional Economic Growth

After 40 years of reform and opening up,China's economy has made remarkable achievements and the total economic output is the second largest in the world.At the same time,regional economy has entered a new period of overall rapid development.So far,China's regional economy is in a steady state of development.As the core region of China's economic development,the economic development of the Pearl River Delta and the Yangtze River Delta has attracted much attention.Therefore,the study of the long-term equilibrium relationship between various economic factors and regional economic development in the regional economic system and the contribution of each economic factor to economic growth has important reference value and reference significance for maintaining the healthy economic development of the Pearl River Delta region and the Yangtze River Delta region and formulating economic policies in other regions.Firstly,introducing relevant economic theories,from neoclassical economic growth theory to endogenous economic growth theory,comparing Harold-Domar model,Solow economic growth model,Romer economic growth model and Lucas endogenous economic growth model,this paper finally chooses Lucas endogenous economic growth model.Secondly,this paper theoretically analyses eight economic factors that affect regional economic growth.Then,based on the panel data of 9 cities in the Pearl River Delta and 25 cities in the Yangtze River Delta,using Lucas endogenous economic growth model theory,through the establishment of a fixed-effect panel model,this paper makes an empirical analysis of the relationship between industrial structure,material capital stock,foreign capital utilization,degree of opening-up,government functions,infrastructure,human capital,domestic and foreign trade development level and economic growth in the Pearl River Delta and Yangtze River Delta.The contribution of eight economic factors to the economic growth of the Pearl River Delta and the Yangtze River Delta is obtained.In addition to human capital and government functions,the industrial structure is the most significant contribution to economic growth of the Pearl River Delta,and then the order is degree of opening-up,material capital stock,infrastructure,foreign capital utilization,domestic and foreign trade development level.the industrial structure is also the most significant contribution to economic growth of the Yangtze River Delta region,and then the order is domestic and foreign trade development level,degree of opening-up,infrastructure,material capital stock,foreign capital utilization.Through error correction model and causality test,it is concluded that there is a significant long-term equilibrium relationship between the eight economic factors and the economic growth in the Pearl River Delta and Yangtze River Delta.At the same time,there is also a long-term causality between the eight economic factors and the economic growth in the Pearl River Delta and Yangtze River Delta.In addition to human capital,there is also a short-term relationship between the other seven economic factors and the economic growth in the Pearl River Delta.In addition to material capital stock and foreign capital utilization,there are also short-term causality between the other six economic growth factors and economic growth in the Yangtze River Delta region.Finally,this paper puts forward some suggestions to promote economic growth in the Pearl River Delta and Yangtze River Delta regions.