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Structural dividends and economic growth in China

Author

Listed:
  • Wang Zhenhua

    (College of Economics and Management, Shenyang Agricultural University, Shenyang 110866, China)

  • Sun Xuetao

    (College of Economics and Management, Shenyang Agricultural University, Shenyang 110866, China)

  • Zhang Guangsheng

    (College of Business, Liaoning University, Shenyang 110136, China)

Abstract

This study aims at analyzing the impact of industrial structure upgrading on the economic growth of China. Based on panel data of 283 cities of China from 2001 to 2014, this paper uses the spatial panel SARAR to analyze the influence of industrial structure upgrading on the economic growth of China’s prefecture-level cities. The results show that China’s urban economic growth has significant spatial correlation: industrial structure upgrading is the prime reason for the economic growth and the differences in the urban economy in China, and the impact of structural dividend on economic growth is positive. However, with the further upgrading of the industrial structure, the structural dividend will become negative, i.e. there is a significant inverted “U” relationship between the industrial structure and economic growth. The study provides new empirical evidence for the new classical economic growth theory and a new research experience for a follow-up study.

Suggested Citation

  • Wang Zhenhua & Sun Xuetao & Zhang Guangsheng, 2018. "Structural dividends and economic growth in China," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 36(1), pages 355-372.
    • Handle: RePEc:rfe:zbefri:v:36:y:2018:i:1:p:355-372
    as

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    References listed on IDEAS

    as
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    3. Meng, Qingxuan & Li, Mingzhi, 2002. "New Economy and ICT development in China," Information Economics and Policy, Elsevier, vol. 14(2), pages 275-295, June.
    4. Choi, Changkyu & Hoon Yi, Myung, 2009. "The effect of the Internet on economic growth: Evidence from cross-country panel data," Economics Letters, Elsevier, vol. 105(1), pages 39-41, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    industrial structure upgrading; structural dividends; SARAR model; China;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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