Social Stability And Economic Growth: An Analysis Based On The Provincial Panel Data

Social stability and the sustained growth of the economy are the common pursuit of each country in the world. However, throughout the rise of the great powers that no one is going smoothly and social problems and economic growth always go hand in hand. After the industrial revolution, the world economy presents the prosperity and development of hitherto unknown and people’s living standard is rising, but humans also experienced a hitherto unknown revolution and war. In the case of China, from 1949 to the present, Chinese economic grows rapidly at the average annual growth of 10%. But behind the high-speed economic growth, poverty gap, environmental pollution problems begin to emerge, and various social contradictions and social conflicts gradually rise. Legal conflict and illegal conflict are on the rise. To maintain social stability and guarantee the sustainable growth of economy have become an important problem we are facing at present.This paper mainly discusses the research about social stability and economic growth of China, and analysis the basic situation of China’s current economic growth and social stability, and try to join the social conflict variables in the premise of the new classical economic growth theory, to test the impact of the current social conflict on China’s economic growth, and the impact of the economic growth on the social conflict. In the one hand, according to the constant returns production function by Mankiw and Romer, we construct a theory framework of the impact of the social conflict on economic growth. Through empirical study we found that from the nationwide situation or from the eastern, central and western point of view, at present social conflicts have a positive impact on economic growth. This shows that the power of government protection is greater than the destructive force of the conflict. This also explains why our country still maintains rapid economic growth in the rising social conflict, and the government plays a very important role.On the other hand, in view of the "Camel" curve of economic growth to social stability, we use function of two variables to describe the path of the economic growth to social stability. Through empirical study we find that both in the nationwide and in the eastern area, middle area, western area, China’s path of current economic growth to social stability has entered the "Camel" curve. But it is in the first half of the "Camel" curve, that is, with economic growth the social conflicts will increase in China and social instability condition will aggravate. Therefore, to guarantee the sustained growth of the economy; increase the social conflict control inputs, establish and improve the conflict management system; establish a fair and reasonable mechanism for poverty alleviation and narrow the gap between rich and poor are the important way to maintain social stability, ensuring economic growth.