Analysis On Factors Affecting Economomic Growth And Development Of Henan Province

As the largest developing country, China's reform and exploration on the economic and social development has never stopped. Into the 21st century, according to the overall development, the state proposed the strategic planning of " Promote the Central Region" and the policy of transformation of the mode of economic development. Against that background, research on economic growth and development of Henan Province has a strong practical significance.What are the factors that affect economic growth and development? Development Economics in its establishment and in-depth study on the economic development process, gave an answer to this question. The Solow growth model which comes from neo-classical economic theory, thinks that the main factors of economic growth are capital, labor, and knowledge and regards them as sources of economic growth. While New Growth Theory offers new ideas and broad space for development for a country or region's economic growth and development, and also provides a new approach for the study of economic growth and development. It broadens the horizons of factors of economic growth and deepens the Development Economics. We believe that the main factors that affect economic growth and development are: physical capital inputs, labor inputs, technological progress, human resources, economic structures, institutional change and so on.So, what are the main factors that affect economic growth and development of Henan Province? To answer this question, we need comprehensive survey of the economic situation and characteristics of Henan Province. As a big agricultural and most populated province, factors of economic growth about Henan Province must have its particularity. Mainly for the large population base, the absolute number of high net population, abundant labor force, high grain yield, rapid industrial development, urban and rural economy so severely fragmented.According to the situation of Henan Province and economic theory on development,this paper selects seven factors of 11 indicators and has a comprehensive analysis of them. Empirical study shows that: physical capital investment, R&D,urbanization and the patent have the largest contributor to the economy of Henan Province,labor input,foreign trade, population quality and energy followed by, food and industrial structure minimum. Population growth is the greatest constraint for economic growth and development of Henan province, which plays a blocking role. On this basis, the following policy recommendations:①continued rationalization of the low population growth rate.②focus on solving the over-population's employment and development.③full use of the state "for the central region" development strategy, speed up the construction pace of Central China city group, raising the level of urbanization.④Transformation of Economic Development.⑤increase investment in agriculture, rural areas, support for farmers.