The Influence of Sino-american Cultural Differences on Economic Development based on Game Theory and Solow Growth Model

Abstract

From 1960 to 2000, East Asian countries' gdp grew at an average annual rate of 6 percent, much higher than the OECD average annual growth rate of 2 percent. As analyzed by the Solow growth Model, when relatively poor countries share some of the same factors as developed countries, the average annual growth rate of East Asian countries is much higher. The economies of poor countries tend to converge with those of rich ones, including better legal systems, competitive markets, and better health programmes. But the real process and the model's conclusions do not match perfectly. Despite the continuous optimization of various systems in East Asia, it is still far away for East Asia to converge with the economic level of developed countries. One of the reasons is that developed countries led by the United States take advantage of their economic advantages and international status under the guidance of capitalist human rights values. The intention is to hinder the development of developing countries, including China, in order to maintain their international status advantages and seek benefits. As the largest developing country, China's development speed in recent years is beyond doubt. With the improvement of economy, the improvement of system and the continuous improvement of international status, different from the exploitation of other countries by the so-called human rights doctrine by the United States, under the principle of socialist core values derived from Chinese culture, China carries out the Belt and Road Initiative, deepens practical cooperation among countries, and holds the World Expo. To issue a green call to the world, jointly build a green earth, jointly cast a community of shared future for mankind, and use comparative advantages to benefit the world. With the improvement of the strength of most developing countries such as China, the contradiction between the behavior patterns determined by the different consciousness of developing countries and developed countries in the international world is deepening day by day. From the perspective of Marxist contradiction analysis, the contradiction is bound to be solved in a way that conforms to the fundamental interests of most people. Let's combine this argument with different arguments in economics to think about what cultural ideas end up dominating world culture when two cultures collide. This paper first uses Marxist materialist dialectics to introduce the reasons for the formation of social forms in developed capitalist countries and the dominant cultural thoughts in the formation process, and then introduces the dominant culture in China's 5,000 years of history. Compare different domestic and international economic behaviors determined by different consciences influenced by different cultures, and compare and analyze the process and results of economic interaction between the two cultural conflicts on the basis of the game model and Solow's growth model. The analysis results show that the expanded Soro growth model of domestic economy on the basis of adhering to the moral primacy culture overcomes the free-rider problem of scientific and technological innovation under the principle of human rights primacy. Therefore, in the end, under steady state, China's domestic economic growth will still be higher than that of the United States, while the international status of the United States will decline due to the rise of a large number of developing countries. Finally, the United States will be forced to give up the current exploitation of developing countries, and the idea of win-win cooperation will become the mainstream idea of international trade.