Influencing factors of the high-quality economic development in China based on LASSO model

Abstract

This paper constructs an index system for high-quality economic development in China from four dimensions: economic system, social system, environment system, and power system. The LASSO method was presented as screen indicators, then we use the panel fixed effect model to investigate the specific impact of key factors on high-quality economic development. The results indicate that: (1) Innovation-driven, infrastructure construction, green technology development, power supply, and efficient utilization of electrical equipment are the most important influencing factors to promote high-quality economic development. (2) Increasing financial expenditures for pollution prevention and control and strengthening the application of green technology will help to adjust the economic structure. (3) Building a complete green energy system will be an essential part of high-quality economic development. On this basis, heterogeneity analysis is carried out according to regional economic differences and power supply and demand positioning. These findings have great significance in high-quality economic development of China.