Entrepreneurship And China’s Economic Growth

Since1990s, entrepreneurship has played a more and more important role inthe economic growth.entrepreneurship has become the main impetus to promoteeconomic growth. The research between entrepreneurship and economic growth ofthe relationship become an important topic.Union our country realitybackground.After the reform and opening up China’s private enterprises rapidlyrising and flourishing without be related with entrepreneur group formation andrapid growth.Although lots of research findings we get, there are several questionsstill not solved. Therefore, this paper selects China to conduct the research of therelation of entrepreneurship to economic growth.Firstly,this paper introduces the current situation of entrepreneurshipresearch,review of the domestic and foreign theories of entrepreneurshipresearch,through the summary of the theory,sort out the definition of entrepreneurspirit.We believe that the entrepreneurial spirit is a kind of will change and developtogether in the spirit of entrepreneurship and innovation,This article about theentrepreneurial spirit of the analysis is based on the two aspects.And then,In theprevious scholars about the entrepreneur spirit metric related literature and the basisof research results,On the entrepreneurial spirit with the status of the associatedindex and its influence factors are analyzed and introduced.According to the spirit ofentrepreneur and economic growth theory, international entrepreneurship measureindex and our country existing data to set up the necessary entrepreneurial indexevaluation system.Venture entrepreneurship is measured by ratio the number ofengaged persons in private enterprises and self-employed individuals to total numberof employed persons. innovation entrepreneurship is measured by patent applicationamount.Based on the State space Model, Kalman Filtering and C-D productive function, thispaper constructs Time-varying Parameter Model to analysis the impacts of entrepreneurship onthe growth of Chinese economy.In order to avoid regional data heterogeneity we basedon Chinese Provincial Panel Data from1994to2009to testify the correlation ofeconomic growth and convergence between entrepreneurship and our country east,medium, western.The results shown that Entrepreneurship has a significant positiveeffect onChina economic growth;Entrepreneurship and regional economic growth hasa strong correlation;Entrepreneur spirit is a important reason for the imbalance ofregional economic development;Regional economic development appears convergencetrend.Finally, after concluding the empirical results some policy suggestions aregiven:To increase business especially innovation behavior of investment. Furtherincrease entrepreneurship contribution to the economic growth;The governmentshould pay more attention to improve entrepreneurship especially in the regions ofmiddle and western China;Speedup the transforming from entrepreneurship to thefinal output;economically less-developed provinces should speed up the step ofchasing by paying more attention to the entrepreneurship and other factors.