Impact of labor force on China's economic growth based on grey metabolic GM(1,1) model

Abstract

Various factors have contributed to China's rapid economic growth, such as capital accumulation, technological progress, structural change, resource optimization, system and institutional innovation. But the rapid growth is motivated by other reasons as well, for example, the demographic factor. This paper contributes to the domain by analyzing and studying the relationship between labor force and economic growth. Firstly, the development of China's labor force is described, which is beneficial to the economic growth for a long time. Additionally, Cobb-Douglas production function model is established to confirm that the labor force has a positive impact on economic growth. Finally, the future economic growth is forecasted based on GM (1, 1) metabolic prediction model, which calculates the labor's contribution to China's economic growth and helps to analyze the main problem on China's labor force as well as makes effective suggestions to promote the economic growth.