Research On The Driving Forces Of China’s Regional Industrial Economic Growth

Under the background of economic downturns in China, the long-term accumulated deep-seated problems and structural contradictions in the industry appear gradually. To solve the current problems, we must pay attention to the mechanism of industrial economic growth momentum, looking for the new driving forces. Since the Chinese government has always been applying the unbalanced development strategy, this paper chooses the Yangtze River Delta, the most developed region in China, as the research object, and studies its industrial growth momentum.According to the economic growth theory and the spillover effect theory, a comprehensive inter-industry growth spillover effect has been put forward, namely TFP spillover effects, which extends the existing growth mechanism. Through taking advantage and adapting the model proposed by the Hiau Looi Kee, the research evaluates the spillover effect of TFP contribution to growth in the Yangtze River Delta. The measurement is divided into two stages. Firstly, under the assumption that the production follows a transcendental logarithmic function, this paper measured the industrial TFP growth rates with Solow residual method. On the basis of this, the growth momentum sources have been decomposed under an equilibrium framework, and measured the elastic data. Finally, the contribution of TFP spillover effects on economic growth has been calculated.Following important conclusions are drawn from the research:(1) There are some differences in the industrial growth momentum in the Yangtze River Delta, and the rank of the provinces in a decrease order is Jiangsu, Shanghai and Zhejiang according to the TFP contribution.(2) There is a ubiquitous TFP spillover effect among the industries in the Yangtze River Delta, besides, this kind of TFP spillover effect is generally positive. TFP spillover effects make a relatively huge contribution to the low- and middle-end technology manufacturing industry. However, for other industry sectors, the effects are different from province to province.(3) The spillover effect among the industries does not closely linked to themselves, instead, it is closely linked with the regions. Compared with Jiangsu and Zhejiang Provinces, however, the inter-industry spillover effect in Shanghai is not so obvious. The channels of TFP spillover are closed and spillover contributions are suppressed. Based on these conclusions, this paper contends that the Yangtze River Delta should adopt diversified development strategies according to the regions’ own situation. What’s more, more attention should be paid to the technological innovation, the development of modern manufacturing service industry and the building of the talent team in the process of development.