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Empirical Study on Relationship between Natural Resources and Economic Growth in Middle China

Author: ZhanLiQun
Tutor: FuChun
School: Nanchang University
Course: Management Science and Engineering
Keywords: middle China natural resources economic growth resources drag TFP
CLC: F205;F127
Type: Master's thesis
Year: 2011
Downloads: 34
Quote: 0
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Abstract


As a transportation hub connect north and south as well as east and west, middle China plays an important role in our country’s economic development functioning as three bases and a hub as well as the key area to build resource-saving and Environment-friendly Society, which is rich in natural resources and stronger in industry development. So how to balance the economic development of promoting the rise of central China and ensure economic growth and natural resources are in harmony makes the research on the relationship between natural resources and economic growth to be practically valuable and theoretically significant.With the economic and resources data, which are collected from 6 provinces of middle China from year 1988 to 2009, tested by ADF and co-integration methods, growth drag and growth contribution caused by energy, land and water during economic development are calculated by the Romer Endogenous Economic Growth Model as well as Growth Drag model and TFP model through regression simulation. Then test the causality from economic growth to natural resources through Granger Causality Test. The main conclusion are as follows:(1) Growth drag is widespread in middle area, which restrict the area’s economic development, and the value of Shanxi, Anhui, Jiangxi, Henan, Hubei and Hunan are separately 0.012398,0.002339, 0.001283,0.013567,0.007519 and 0.007389. (2)Natural resources play an important role in economic development, contributing 15 percent of the productivity,90% of which comes from energy resources. (3)The impact on natural resources from economic development is affected by resources’elasticity, which means resources with high elasticity such as energy will be affected greatly while resources with low elasticity such as land and water will be affected a little’or little.At last, police suggestion in accordance with economic development and resources situation includes:To play the guiding roles of "practice bases"; to improve efficiency of resource utilization; to advocate resources protection and get rid of the waste; to promote industrial structure optimization; to respect independent research and development; to promote the construction of ecological compensation mechanism and low-carbon economy development.

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