||Since China’s economic reform opened up, confronting an environment where it requested foreign economic and trade exchanges to be more open, China’s economic development would also face a greater challenge. This study would like to investigate that before and after China joined WTO, how did the factor changes and relevance of introducing foreign investment towards China’s international trade transactions, capital investments, progress of production technology, human capital, infrastructures and city development influence on China’s economic development. |
According to the data of thirty-one provinces and cities in China between Year 1998~2013, this study used regression analysis and endogenous economic growth model to build a research analysis model including accumulation of human capital, domestic research, development and input, domestic investment and technological equipment progress brought by transnational enterprises. Also, use panel data to return the construction and data tests of the model for doing empirical analysis. And use factor analysis to find variables which influenced on economic development at thirty-one provinces and cities in China, compare competitiveness of city development. This illustrated that infrastructures also played an important role in economic development.
The main findings of this study included: First, the explanatory ability of panel data fixed effect regression model was 98.6%. Second, explanatory variables of the model towards response variables had obvious explanatory ability on statistics. Third, it was noteworthy that scale elasticity of educational expenditure was negative. Fourth, China’s domestic capital enterprises are becoming main researching and development body of China day by day. Expenditure of research and development of foreign enterprises was still an important constituent for research and development that China’s enterprises put in. Fifth, increasing human capital investment of critical industry sectors made the proportion of human capital and material capital reach new technical requirements of industrial upgrade on critical industries. Sixth, provinces and cities within the top ranks of comprehensive development strength of thirty-one provinces and cities in China in 2014 mainly concentrated on coastal provinces. Seventh, constantly conducting adjustment of China’s economic system helped China’s economy to grow. Eighth, the method of narrowing difference of regional development was to build more efficient economic connection and integration, improve eastern and western transportation and traffic network, conduct investment of infrastructure and put in efficient human capital education and educational funding between regions. These were concrete methods to narrow regional gap between rich and poor.
This study recommends China’s economic development shall reduce trade barriers and positively promote trade liberalization, integrate function and supervisory system of financial markets; use comparative advantages to develop industries in each province and city, introduce and promote industries of high added value; build perfect system to train labor force in each industry, reduce shock of frictional unemployment; build dense and convenient traffic network, perfect communication, electric and hydraulic system; implement patent right, guarantee motive power of research and innovation, build development system which suits Chinese national conditions and also respond accordingly to world situation and adjust.