Empirical Analysis On The Source Of The Economic Growth Dynamic Since The Reform And Opening Up Of Shanxi Province

Since the reform and opening up, China has basically kept anaverage annual growth rate of 9.83 % of GDP; while that of Shanxiprovince is as high as 11.45%. However, the gap between Shanxiprovince and the eastern region even some of the central region ofChina has an gradually expanding trend. Since Shanxi province is anrepresentative inland province in central region of China, theacdemia and the relevant decision-making layers are veryconcerned about the subject under discussion that how to achieve abetter and faster scientific economic development of Shanxiprovince to gradually narrow the gap with other provinces of theeastern region and the central region. Therefore, to clarify thefactors promoting the economic growth of Shanxi province andexplore the source of power of the sustainable growth have becomea very necessary basic work.Research on the question of economic growth has always beenone of the themes of economists. The majority of the past studies allassume the object of study to be“isolated islands”and ignore therelation between the object of study with the outside world.However, due to the degree of expansion of openness to the outside world, such factor as foreign trade, factor mobility, the spread ofknowledge and technology etc. make the links among the regionsmore complex. These economic bodies are no longer in isolation butlinked mutually, and the gather effect becomes more and moreobvious. Therefore, the regional economic growth is not onlydependent on itself but also closely related to the growth of otherregions. In recent years, the development of new economicgeography and spatial econometrics has injected new ideas andvitality into the study of regional economic growth.Taking neo-classical economics and new economic geographyas theoretical bases, by the use of spatial econometric model, thethesis analyzes the source of power of economic growth and spatialdependencies of economic growth between cities and regionseconomic growth of Shanxi province from these aspects such aslabor force, physical capital, human capital, finance and system.This paper attempts to answer the following two questions: What isthe inner driving force for economic growth of Shanxi province?What are the impact factors of the economic growth rate in ShanxiProvince? Finally, it puts forward the related countermeasures andsuggestions on the existing problems of economic development inShanxi province by the combination of the regional economictheories and empirical analysis.The main conclusions are: (1) GDP per capita among the cities ofShanxi province has a very strong spatial correlation. (2) Adequatelabor force, adequate physical capital, excellent human capital, asound financial system, the perfect infrastructure, adjustment ofindustrial structure and active fiscal policy, these factors have a significant role in promoting the growth of GDP per capita in thecities of Shanxi province. (3) Since the reform and opening up, themain reasons for the rapid economic growth of Shanxi province liein the development and utilization of mineral resources, as well ashigh-intensity investment of physical capital, and the impact ofhuman capital and other factors are on the small side; however,after the economy of Shanxi province develops to a certain extent,the economy of Shanxi province shows a situation of the“resourcecurse”, and Shanxi province needs to change the mode of economicgrowth as quickly as possible to achieve the economic developmentfrom extensive to intensive development. (4)The lack of the degreeof expansion of openness to the outside world of Shanxi provinceand the failure of taking full advantage of the comprehensivebenefits of foreign direct investment and international trade resultin the phenomenon that the index of openness to the outside worldin the regression results has an insignificant impact on theeconomic growth of Shanxi province.