Shaanxi Ranks among the Fastest Economic Growth Players of China

2017-12-07 09:39:06 , Source : The Government Website of Shaanxi Province

The research report released by Shaanxi Provincial Bureau of Statistics on Dec 4 made an analysis of the contributors to the economic growth of Shaanxi Province. It showed that investment has played an important role and the growth of population is an equally important contributor to the economic development that should not be underestimated.

With an average annual growth of 11.5% over the past decade, Shaanxi becomes one of the top players in terms of growth rate

The economy of Shaanxi Province has maintained the positive momentum of development. The volume of Gross Domestic Product (GDP) stood at almost 1 trillion yuan during the period of 2006 to 2009, exceeded 1 trillion yuan for the first time in 2010, and reached 1.8 trillion yuan in 2015, growing 7.9% year-on-year, with an average annual growth rate of 11.5% over the past decade. With the increase of the GDP, the proportion of Shaanxi in the total of China is also growing, ranking the 15th place in 2015 from the 20th in 2006, and surpassing the arch rival Inner Mongolia for the first time, making the first step for the province to start its stride of overtaking peers in the country. In terms of growth rate, Shaanxi has become the top players of the country and maintained a two-digit percentage rate of its fast developed economy during 2006 to 2010, with the highest rate of 16.4% achieved.

The analysis based on the data of the total 31 provinces or regions showed that the upgrade of industrial structure has made a significant contribution to provinces of less developed economy, especially to such provinces in West and Northeast China, but it has done little to the economic growth.

The figures of Shaanxi showed that investments have played a significant role to promote the economic growth of Shaanxi and other 25 provinces in China; but that from the perspective of the country, Shaanxi is placed in the downstream with low investment factor, which stood at 0.5308, or 1.2167 less than that of Shanghai, one of the regions in China with most active investments, hence the investment effect of Shaanxi is on the low side.

Urbanization has no significant impact on most of regions, it has positive impact on a few provinces that are relatively backward economically. The level of urbanization of Shaanxi has not produced substantial impact on the GDP, which indicates that over the past decade the urbanization of the province has not synchronized with its economic growth.

Capital input has greatly promoted the economic growth of Shaanxi

Patented technology has made significant contribution to some provinces. The factors of patents of developed provinces are relatively high, with that of Guangdong (richest province of China) standing at 0.2248 and that of less developed regions being lower. The figure for Shaanxi is insignificant, which indicates that patented technology has yet to be turned into productivity that stimulates the local economic growth.

With regard to the above results, Du Yueping, Professor of Economy and Management School of Xidian University said that, as the remaining one of the regions of less developed economy in China, Shaanxi has presented a strong economic growth momentum in recent years that cannot be ignored; that the province boasts abundant resources of education and research, so it is necessary to make efforts to commercialize the achievements of scientific and technological researches; that on one hand, mechanism of talent cultivation and incentives shall be improved to motivate researchers to work harder; and that on the other hand achievements of research shall be merged with practical application to turn them into real productivity.

An expert of Shaanxi Provincial Bureau of Statistics argued that capital input has made significant contribution to the provincial economic growth, that the province needs to maintain the appropriate capital input continuously to make it the driving force behind the local economy, and that the marginal effect of investments in Shaanxi Province is relatively low and the structure of investment needs to be optimized.

Meanwhile, the growth of population has made a pleasing contribution to the economic growth of Shaanxi Province, as the case of a few regions. From the results shown, the growing population of Shaanxi has made significant contribution to the GDP with a strong factor of influences, which indicates that the population has done its job in promoting the GDP. The economic and social development of a region cannot go without human resources. And the great development of Shaanxi must rely on cultivation, attraction and retention of talents. Human resources of all kinds are welcome to settle in Xi’an to make bigger contributions to the development of Shaanxi.

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