The Study Of Endogenous Economic Growth Of China Based On Structural Equation

Economic growth is highly social concern in recent years, scholars have proposedmany explanations on the relevant theories of Economic Growth. The EndogenousEconomic Growth Theory in the1980s, is more popular in recent years the interpretationof the Theory of Economic Growth. This article summarizes the three main theories ofEconomic Growth, and emphatically introduces The Endogenous Economic GrowthTheory and its advantages as well as the three main Endogenous Economic GrowthModel. Economic growth problem is one of the major problems of the scholars study,usually by Correlation Analysis, Regression Analysis, Factor analysis(Exploratory Factoranalysis), etc..In this paper, we use Structural Equation Model Analysis of China’sEconomic Growth. By the analysis of these method,we can find the advantages of TheStructural Equation Model when explaining the China’s economic growth.This articles collected30areas in China from1997to2011, a total of450groups ofdata. First, using the225groups of data through the Exploratory Factor Analysis to findthe main factors that affects the economy, so as to establish theoretical foundation for theconstruction of a Structural Equation Model. Then using Structural Equation Model forthe rest of the225sets of data by confirmatory factor analysis and path analysis,analyzed the applicability of the endogenous economic growth model in China andexplore the source of China’s economic growth problem. In this paper, The ExploratoryFactor Analysis and Structural Equation Model (including confirmatory factor analysis),makes the analysis more reliable, the conclusion more reliable and more accurate.General research on Economic Growth tend to select individual indicators asindependent variables directly explains the dependent variable-Economic Growth. Butsome factors in the economic growth such as Human Capital, Physical Capital,Technology Elements, there is no exact index can measure, and it is also difficult tosubstitute one or more indicators. This article uses the Economic Growth, PhysicalCapital, Human Capital, Technical Level as latent variables, each variable in multipleobservation variables to measure,by building a Structural Equation Model which includeMeasurement Equation and Equation of Structural Equation to find if it id suitable or notof The Endogenous Economic Growth in China. The use of Structural Equation and the Endogenous Economic Growth Model has important theoretical and practicalsignificance, both in the use of Structural Equation and the economic growth fields.By building a Structural Equation Model, we can find several main conclusions:(1)the Technical Level and Physical Capital, Human Capital has a high correlation betweenthe conclusion illustrates the increase of Material Capital and Human Capitalimprovement can make Technical Level unceasing enhancement, the biochemicaltechnology. Positive effect between them also illustrates the applicability of theEndogenous Economic Growth Model in China.(2) Physical Capital, Human Capital andTechnological Level of China make a significant contribution to the economic growth.But Physical Capital to economic growth contribution rate is the highest, followed byHuman Capital, and Technology contribution rate of economic growth in China is stillrelatively small. The biggest boost China’s economy is Physical Capital and HumanCapital and Technology level, with the endogenous economic growth theory coincidewith the idea of the first stage.(3) Economic growth for the Second Industry and ThirdIndustry to measure effectiveness is higher and the difference is not big,but the FirstIndustry is more small. Positive measure effectiveness in line with the general economiccommon sense, and it prove that China’s economy is out of the traditional AgriculturalEconomy, into Modern Industrial Economy, and has made considerable progress in thewave of information economy and service economy development. Petty-Clark believesthat with the improvement of economic growth and income, the economic structure willbe "One, Two, Three" into "Three, Two, One", and this paper proved it.