Analysis On Chinese Economic Structure Changes On Regional Economic Growth

As an aspect of institutional factors, industrial structure has affected the efficiency of production factors such as capital and labor, therefore, become the basis of the economic growth, More importantly, it has become a very important factor of influencing the economic growth with the total economic growth. And the industrial structure is corresponds to economic growth, and changing constantly. It shows industrial structure advanced trend mainly, namely industrial structure from low-grade to the senior gradual progress. In order to promote economic growth, it is tending towards the rationalization constantly. what is indicated by the practice of modern economic development is that except for capital, labor and the other factors, economic growth, more importantly, depends on the optimization and adjustment of economic structure. Being a developing country, China is facing this situation of economic system transition and economic growth style transformation. As a result, the practices of modern economic development have very great reference meanings.Firstly, the paper inquire systematically the research context of industrial structure and economic growth domestically and abroad. According to the new classical economy growth theory, introducing institutional factors, the paper builds an extensional Solow economic growth model. Then, based on the amounts and regional structure of industrial structure from 1996 to 2007,the thesis analyses deeply industrial structure change trend in China, in order to further explore industrial structure evolution on economic growth mechanism. On the basis of the theoretical model designed, meanwhile, introducing spatial correlation, the paper established spatial panel regression model for cooperative contribution of industrial structure change to regional economic growth.. Further, using 31 provincial data of nearly 12 years in China, we empirically tested the relationship between Chinese industrial structure change and regional economic growth and geographical spillover effect by Spatial Econometrics Toolbox in Matlab. Our results indicated that there was statistically significant promotion and spillovers in contribution of industrial structure change to regional economic growth.