The Theoritical Description And Emprical Research Of Economic Growth In Zhejiang Province

As Alywn Young has confirmed, the economic growth of most newlyindustrializing countries (NICs) depends on a great amount of inputs.Although these countries (areas) have a variety of performance becauseof their differences in political systems and resources endowment, it haswidely accepted that the economic growth of these countries (areas)depended on massive inputs initially. Such growth style may causeserious problem, mainly in the long-term growth.After reforming and opening, Zhejiang got through a rapid growthperiod. But compared with their export-oriented development strategy,the one that Zhejiang chooses is just the opposite. And by expandinginternal trade and selecting industries corresponding to its local resourceendowment, the performance of Zhejiang's economic growth isremarkable. Following the high-speed growth for a decade from 1990 to 1999, the growth rate was slowing down continuously. This is beyondquestion, and which is confirmed that the growth rate of real GDP wasdecreasing from 22 percent per year in 1993 to about 10 percent per yearin 2001. Until recent four years the growth rate is increasing gently. Sothere are many similarities between the economic growth in Zhejiang andthat in the NICs.Base on the macro data and the processed data, we use theeconometrics model to analyze the effect of factors and find that theindustrialization process in Zhejiang is quite the same with these NICs. Inother words, the economic growth of zhejiang is mainly result from thestatic optimization of resources allocation, but not the dynamicoptimization.In this paper we discuss the process of economic growth and thechange of industry structure with suitable method in detail. With theestimated capital stock, we decomposed several important factors ineconomic growth to analyze the quality of economic growth in Zhejiangby using many models.The analysis of economic growth is an important part of growthaccounting. In order to calculate the contribution rate, on the base ofselecting the dataset of local statistical index, adjusting these data andutilizing theoretical method, we use the Cobb-Douglas productionfunction as a suitable method for analyzing the growth condition in Zhejiang, which results in some significant conclusions. Finally throughanalyzing the relationship between capital and economic growth, we findthe reason behind the growth which causes a series of phenomena, andconsequently a selectable way is brought out to thinking once again forthe adjustment of input structure and the optimal path of economicgrowth in the long-term.