What explains regional economy growth in China

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What explains regional economy growth in China

 

Author: Cheung, Chi-wai
Title: What explains regional economy growth in China
Degree: M.Sc.
Year: 2000
Subject: Economic development -- China
China -- Economic conditions -- 1976-2000
Hong Kong Polytechnic University -- Dissertations
Department: Multi-disciplinary Studies
Dept. of Business Studies
Pages: 3, 77 leaves ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1577037
URI: http://theses.lib.polyu.edu.hk/handle/200/4792
Abstract: This project estimates an economic growth equation cross sectionally for thirty provinces and cities in China for the period of 1990 to 1998. The focus of study is on the relationship between aggregate productivity and various factors input. The regional government expenditure, education level of the population and foreign directs investments (FDI) are the factors in focus. Their influence to the regional economic performance will be examined carefully in the framework of an expanded production function that also includes traditional variables such as labor, capital and export. Special care was made in the selection of variables to avoid corruption of coefficients of these variable caused by a possible mutual influence between them. It is intended to provide some implication of whether government spending, education and foreign direct investment would be important components of any policy package designed in promoting the balance of China's regional economy. The project differs from previous studies by introducing government expenditure and education (secondary school enrollment rate) in the population as explanatory variables to regional economic growth in the context of China. The study also includes most of possible ingredients to growth in modem growth theory. The results show that government expenditure, FDI have the most impact on regional economic performance while growth in educated population does not have statistical significant effects on economic growth. However, government spending as a fiscal policy to stimulate economic growth has to be very carefully balanced with the government revenue so as to avoid any budget deficit. This then generates inflation which is harmful to the economy.

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