Economic Growth Theoretical Model Selection And Reginional Convergence Analysis

The convergence of regional economic growth has been one of the highlights in the research of economists for a long time, about which there are also a large volume of domestic and foreign literature. In recent years increasingly important foreign literature chooses the theoretical model of economic growth before researching this issue, but there are few domestic scholars to pay attention to this issue before considering the choice of China’s economic growth model. Some scholars who directly use either the neoclassical model of growth or the new economic growth model, but only few scholars choose the theoretical model through econometric approach. So the paper tries to study the convergence of the regional economic growth on the basis of choosing economic growth theoretical model.The objective of this paper is based on choosing economic growth theoretical model to analyze the economic growth convergence, which are combined with empirical analysis and the reality of economic growth since reform and opening. For this purpose, this paper at first reviews the economic growth convergence theory of neoclassical model and the new economic model. Focusing on the difference of the human capital’s two impacts on each theoretical model, this paper based on it to choose a theoretical model apply for China’s economic growth. Then, this paper using variance coefficient analyzes σ-convergence and using the static panel model test whether the economic growth exist absolutely convergence and club convergence. At last using the pooled mean group (PMG) method to choose the theoretical model of our country, After this work, this paper go on using the same method to analyze the conditional convergence and introduce the industrialization level, the urbanization rate, the foreign trade degree and the administration cost to analyze the impact on economic growth convergence.The empirical result of this paper is that σ-convergence and absolutely convergence of the whole country are existed only for a while, the absolutely convergence of middle and west area is the same way. PMG method estimate appears that human capital generates positive spillover effects on economic growth and been combined with the faster convergence rate, both of which show that the Lucas-model are more able to apply for our country’s economic growth which conditional convergence are exist. Based on it, the empirical result with control variables appear that the main driver of economic growth are human capital and physical capital, but there is a lag effect of human capital on economic growth; On the short time the industrialization level and the urbanization rate can obviously drive economic growth while the industrialization level is the major driver of the long-term growth.