Provincial Quality of Economic Growth: Measurements and Influencing Factors for China

Shaofeng Ru, Jiaqi Liu, Tonghui Wang and Guo Wei
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Shaofeng Ru: School of Economics & Management, Northwest University, Xi’an 710127, China
Jiaqi Liu: School of Economics & Management, Northwest University, Xi’an 710127, China
Tonghui Wang: Department of Mathematical Sciences, New Mexico State University, Las Cruces, NM 88003, USA
Guo Wei: Department of Mathematics and Computer Science, University of North Carolina at Pembroke, Pembroke, NC 28372, USA

Sustainability, 2020, vol. 12, issue 4, 1-16

Abstract: An extended total factor productivity method is developed for measuring the quality of economic growth (QEG). Specifically, criteria for judging the QEG are first elaborated using endogenous economic growth theory, and subsequently, an assessment index system for evaluating QEG is constructed. In this system, the production factors primarily include labor, material capital, education, medical and health, environmental resource, and social security, while the output indexes comprise the gross domestic product (GDP), employment rate, income gap, and environmental pollution. In the empirical study, the directional distance function and Global Malmquist-Luenberger index are implemented to examine the QEG in China from 2000 to 2016 by provinces, regions, and factor decomposition, respectively. The global scale technological change and global pure technological change are the main sources for improving the QEG. The results also reveal a considerable widespread inefficiency and uneven development of the QEG. In general, from the eastern to western to central regions, the QEG becomes noticeably lower; The investment level is not only a driving force for economic growth, but also a source for boosting the QEG. These findings will provide a reference for China in adjusting relevant investments, ameliorating environmental conditions, and accomplishing the unity of quantity, quality, and efficiency in economic growth.

Keywords: endogenous economic growth theory; quality of economic growth index; direction distance function; Global Malmquist-Luenberger index (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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