An Empirical Analysis Of Economic Growth In Gansu

Economic growth is the basis of existence and development of human society and the enduring major issue of the economic and management theories. Economists have been exploring the basic causes of economic prosperity and recession, so different schools of economic theory have been formed. Based on the previous achievement of the study economic growth, the paper analyses the main factors impacting on economic growth by means of classification, and does the empirical analysis on the basis of historical data of the economic development in Gansu Province.Based on the Solow production function model and the statistical data, this paper estimates main factors of contribution to the economy growth during 1978 - 2006, and mainly discusses the contribution of structural factors and technological progress to the growth of the economy of Gansu Province. It also explains the epitaxial growth determined by the capital and labor input as well as the internal growth, and estimates the effect of the allocation of resources. It is found that after the introduction of two variables, human capital and R&D capital, tangible capital's contribution to economic growth increases. Because technological progress depends on human capital and R&D capital, in order to accelerate the rapid economic growth in Gansu, it is imperative to rely on technological progress (TFP) rather than on the expansion of the number of elements. It is concluded that to realize sustained and rapid economic growth in Gansu, the key is to enhance labor capital and the production level of R&D capital.