Evaluation of the contributions of four components of gross domestic product in various regions in China.

Sanmang Wu,Yalin Lei,Li Li,Alejandro Raul Hernandez Montoya

doi:10.1371/journal.pone.0121594

Abstract

Four major components influence the growth of the gross domestic product in Chinese provinces: consumption, investment, transnational exports, and inter-provincial exports. By splitting a competitive input-output table into a non-competitive input-output table, this study used an input-output model to measure the contributions of the four components of gross domestic product in various regions in China. We found that international exports drove the growth of the gross domestic product more strongly in the eastern region than in other regions. Investment and inter-provincial exports were the major impetus for gross domestic product growth in the central and western regions. We also found that consumption played a minimal role in driving the growth of the gross domestic product in all regions in China. According to these findings, although various regions can share much in terms of policies to transform the impetus for economic growth, there should be different foci for different regions. Their shared policy is to increase the role of final consumption in stimulating economic growth. Region-specific policies mandate that the eastern region should strengthen the driving force provided by international exports and that the central and western regions should strengthen indigenous growth capabilities by improving scientific innovation, industrial support, and institutional innovation.

Highlights

Since its reform and opening up to the outside world, China has made great strides in terms of economic and social development
In 1997 and 2002, the weighted average of the proportion of gross domestic product (GDP) driven by international exports in the eastern region was 16.3% and 16.8%, respectively, compared with 3.71% and 2.65% in the central region, 3.60% and 2.55% in the western region, and 8.70% and 6.28% in the northeastern region
The weighted average of the proportion of GDP driven by international exports in the eastern region grew from 16.8% in 2002 to 21.7% in 2007

Summary

Introduction

Since its reform and opening up to the outside world, China has made great strides in terms of economic and social development. Since 1978, China has maintained a 10% annual gross domestic product (GDP) growth rate. The problem of uneven, incompatible, and unsustainable economic and social development is still prominent. In terms of the driving forces for economic growth, China’s economic growth primarily depends on the pull of investment and exports and lacks the stimulation of consumption demand, which is problematic [1].

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Results

Conclusion