The Drag Effect of Water Resources on China’s Regional Economic Growth: Analysis Based on the Temporal and Spatial Dimensions

Yao Zhang,Wenxin Liu,Minjuan Zhao

doi:10.3390/w12010266

Abstract

Studying the influencing factors of the drag effect of water resources and its temporal–spatial variation can help governments to solve the problem of water resource constraints on the economic growth of different regions. Based on Romer’s hypothesis, this paper uses panel data to empirically analyze the drag effect of water resources in China’s 31 provinces from 1987 to 2017. The research shows that: (1) Water resources have certain constraints on the economic growth of each region. Regional economic growth has declined by 0.23% (eastern), 0.07% (western), 0.43% (central) and 0.09% (northeastern) annually. (2) In provinces with rapid labor growth, water resources have a greater impact on economic growth. In provinces with low labor growth rates, the drag effect of water resources on economic growth is affected by the capital stock of the region. (3) Through the analysis of the water drag effect in different time periods, this paper finds that in some periods, the government’s mobilization of water resources for the economic growth in some regions will not only promote the transfer of labor between regions, but also cause changes in the regional water resources. According to the results of this paper, the following conclusions can be drawn: (1) It is necessary to vigorously develop water-saving agriculture, improve technical efficiency, and reduce the strong dependence of economic growth on water resources in the provinces which has a strong water drag effect on economic growth; (2) Provinces with moderate water resource constraints should take the lead in deploying strategic emerging industries, and accelerate the development of the tertiary industry; (3) Provinces with weakly water resource restrictions can promote the development of capital-based industries. Not only can the development of the economy be rational, but it can also reduce the economy’s dependence on resources, thereby achieving the sustainable use of water resources and sustainable economic growth.

Highlights

Water resources are an important material basis for human survival and a necessary strategic resource for social and economic growth [1]
In provinces with low labor growth rates, the drag effect of water resources on economic growth is affected by the capital stock of the region
Due to the limitation of resources, the economic growth rate will be lowered to a certain extent than the growth rate without resource constraints

Summary

Introduction

Water resources are an important material basis for human survival and a necessary strategic resource for social and economic growth [1]. China’s economy has developed rapidly, with an average annual growth rate of nearly 10% [2]. In 2017, China’s total GDP exceeded 80 trillion yuan, accounting for 15% of the world economy. China’s economic growth miracle has been coupled with the increasing pressures of limited resources [3]. While China has a vast territory, its population accounts for 22% of the world’s total population. The per capita water resources are only 27% of the world’s per capita level, which is far below the world average [4]. The lack of water and the uneven distribution of water resources in time and space are China’s basic national conditions and water conditions. Serious water pollution, and the deterioration of water ecology are

Objectives

Results

Conclusion