Research On The Dynamic Efficiency Of Economy In The Transitional Period Of China (1993—2012)

Dynamic efficiency of economic has always been the key to study economic growth theory. Its core question is whether capital excessive accumulation.That is whether capital accumulation is over the standard of golden rule. If capital accumulation is beyond the golden rule level, the economic spend too little and save too much. So the economic is dynamic inefficiency. We can use the level of capital accumulation to examine dynamic efficiency.This article summarizes the past scholars’studies of economic dynamic efficiency and theoretical models of dynamic efficiency. Based on the AMSZ rule, the paper analyzes the dynamic efficiency of China from1993to2012.The following major conclusions are obtained. First, dynamic efficiency of our economy is from1993to2002and dynamic inefficiency is from2003to2012.Second China’s dynamic efficiency is correlated with economic fluctuations.From the2008financial crisis, capital accumulation of China’s economy had deterioration. When we use this measure to examine regional capital accumulation, we find some conclusions as follows. First, economy in the eastern region has always been in a state of dynamic effective over the sample period. Central regional economy follows. Capital accumulation of regional economy in the West is the worst. It means regional capital accumulation is correlated with the development of economic.Second, three regional capital gains rates tend to converge. Rate of investment of middle and west regions rise faster than eastern region.Based on analysis of economic dynamic efficiency, we suppose level of investment is a major cause of capital accumulation. Excessive investment made capital per capita increase quickly. Marginal putout of capital and Capital gains is declining. Economy capital accumulation had deterioration. Degree of fiscal decentralization has strengthened local government to intervention in the economy, leading to deterioration of the resource allocation. That is not good for improvement of economic dynamic efficiency improvement. Optimization of industrial structure can help use the resources and improve the allocation of resources efficiency, which can improve the economic dynamic efficiency. So, this paper uses provincial panel data to test this hypothesis and we find the hypothesis is true.In the end, based on this paper’s conclusions and China’s economic, we analyze the way to eliminate the dynamics inefficiency and make relevant policy recommendations.