Research Of Evaluation System To Assess County Economy Based On SEM Model

In recent decades, the county economy, which developed fast and owed great potential,has occupied half of the national economy."The county economy" is put forward for the firsttime in The16th National People’s Congress of the communist party of China. After that, The17th NPC stressed the importance of "strengthen county economy" again. Hebei provincialparty committee and government treated the county economy as an important support foreconomic development and present a series of policies. In order to ensure the healthy andorderly development of Hebei’s county economy, it’s imperative to establish a scientificevaluation system. And the ecological environment has been becoming a more importantfactor, affecting the development of county economy, gradually."Improve the evaluationsystem, correct the bias of evaluate the performance only based on economic growth" hasbeen proposed in a file, which is put forward in the Third Plenary Session of the18th CPC.Therefore, it is a significant work to establish a new set of assessment of the county economyevaluation system.Based on this, the paper designs indicators from "the economic strength","the people’slivelihood improvement","the new four modernizations’ development","the environment ofeconomic development" and "ecological environment". Those indicators are based on thestatus of the county economy evaluation system research at home and abroad. Then we makea questionnaire about the evaluation system on Hebei’s county economy. The countryeconomy experts, who have been accepted our interview, give their answer about thequestionnaire. According to the fresh data and the SEM model, we obtain the relevance of theindicators. After deleting the low related indicators, the evaluation system has been completed.The index system, designed by SEM model, can make a more objective evaluation on theactual situation of Hebei’s county economy. Based on the system, this paper makes anempirical analysis on the135counties of Hebei province. The counties is ranked by "theeconomic strength","improving people’s livelihood","new modernization development" and"comprehensive strength". And they are divided into five classes on clustering analysis.Through the empirical analysis, we find that economic development is not balanced,economic development is not prominent and the development level is not high. To the end, this paper put forward several suggestions on "economic system","thefunctions of the government","the improvement of people’s livelihood" and "theenvironmental protection".