Explaination To "Resource Curse" Phenomenon In China

"Resource Curse"is a phenomenon that natural resources make restrictive function to economic growth, so the economic entities having rich resources get much slower growing speed than those having poor resources. Previous researches explain many reasons, such as"Holland Disease", trade condition theory, seeking lease and depravity, contempt on human resource investment and extrusion function of resource industry. For China,"Resource Curse"has been proved existent, but the reason is still a haze, and little deep research has been made. This article wishes to prove the phenomenon, and explain the reason mechanism.This paper considers the true condition in China, puts forward a dynamic conduction mechanism, and make a complete and systemic reason analysis. Author chooses four main kinds of energy of coal, oil, natural gas and electrical as the study medium, and chooses the resource industry and manufacture industry as the analysis objects, then make detail and deep researches from country, district, and province layers. Firstly author discusses the energy's function, and the relationship between the energy supply and demand and economic growth. Secondly author researches the relationships among the change of energy supply and demand, factor flowing in industries and economic growth, which is in order to demonstrate the"Resource Curse"phenomenon and the"Extrusion Function". Thirdly author chooses Shanxi province as object to research the influence of the factor return and its change on factor flowing, so to explain the deep reason of resource industry's"Extrusion Function"in those provinces having rich resources.The empirical result reveals:(1)The production and consumption of energy make very important effect on China's economic growth.(2)From district layer, middle and west districts have"Resource Curse"problem during a long time although had a much fast growing speed after 2004.(3)From province layer, the"Resource Curse"phenomenon exists objectively in China but it is not widespread. The rate of coal energy supply and demand and economic growth are negatively correlated, the rate of electrical energy supply and demand and economic growth are actively correlated, and the oil and natural gas have active but not prominent correlation with economic growth. The increase of labor factor in resource industry makes negative and prominent effect on economic growth, and the influence is much larger than manufacture industry; and increase of capital factor in resource industry makes much little active effect on economic growth than manufacture industry, those two reasons indicate the existence of"Extrusion Function".(4)To explain the"Extrusion Function", resource industry has much higher factor return rate and labor factor bound output rate than manufacture industry, but the capital factor bound output rate is lower; Resource industry's"Extrusion Function"mainly includes the absolute extrusion function in labor, and comparative extrusion function in capital and resource.This paper thinks that resource advantage influences economic growth from internal factor flowing and external system arrangement. By the advancement of economic reform and the accelerating of West Development process, middle and west districts should avoid the"Resource Curse"phenomenon using system, market, technology, environment protection and other ways. From system angle, they need to build a reasonable resource exploitation mechanism, consummate the compensation and profit distribution mechanism, cancel the plan injunction on energy distribution, reject the seeking lease and depravity activities, and adjust the national energy strategy. From market angle, they need to push the reform of factor market, and adjust the industry structure. From technology reform and human resource angle, they need to improve the equipments'technique level, and enhance the technology training, meanwhile they should push the legislation of environment protection, carry out the scientific outlook on development to make the population, resources and environment harmonious.In a word, on the background of West Development, those districts having rich resources should have"Making Blood"function, then let the economic growth have impetus power, competitive power and persistent power.