Abstract:
Purpose/SignificanceIt is very important to measure the total factor productivity of economic growth in west China, find out its influencing factors, look for new kinetic energy, improve the quality of economic development, and narrow the gap between central and western regions.
Method/processThis paper chooses the C-D production function with Solow Residual Method, does quantitative analysis on economic statistics of Ningxia in 1978-2015 with Johansen MLE Error Correction Model (VECM), calculates the total factor productivity of economic growth in Ningxia, and analyzes the influencing factors of total factor productivity, based on which, the paper analyzes the economic development in west China.
Result/conclusionThe study shows that: ningxia's economy has changed from extensive one to intensive one; attentions paid to economy development of Ningxia play a very important role for western areas to get into a new era; and government expenditure has negative correlation with total factor productivity. What else, there is less investment in R & D and weaker innovation ability in Ningxia. The second and third industries have larger pulling effect on the total factor productivity.