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The Analysis of the Optimal Economic Growth with Constraints of Natural Resources

Author: LiuShan
Tutor: GongZhiMin
School: Xiangtan University
Course: Quantitative Economics
Keywords: Natural resources Economic growth Human Capital Technological advances
CLC: F061.2
Type: Master's thesis
Year: 2008
Downloads: 287
Quote: 1
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Abstract

With the great progress of the social productive forces and the rapid economic growth since the mid-twentieth century, the sharp increase in the consumption of natural resources, natural resources, ecological environment has been severely damaged, the depletion of natural resources and sustained economic growth between the obvious contradiction Day, causing widespread concern and worry in the community. Since the Chinese economy since the reform and opening up has also experienced nearly three decades of rapid growth, this growth process is inevitably accompanied by the huge consumption of natural resources, taking into account China's per capita consumption of natural resources is a relatively small and relatively efficient development and utilization low national conditions, China's natural resources constraints seem more serious and urgent. In the context of reality, the modern theory of economic growth and sustainable development theory based discussion of the constraints of the natural resources, the economy whether and how to achieve sustainable growth. Natural resources introduced in the framework of the theory of optimal economic growth as a factor of production, the first analysis of the neoclassical growth model in the natural resource constraints, to reveal the natural resources for sustainable economic growth constraint effects, demonstrated in a human capital accumulation, technological progress in the economy, with the depletion of natural resources, the economy will be negative growth, which means that sustainable economic growth is impossible; subsequently, the introduction of elements of the natural resources within by building a endogenous growth model to examine the mechanism of accumulation of human capital and technology research and development in overcoming the constraints of natural resources, and model analysis results show that, as long as the accumulation of human capital and technology R \u0026 D has a sufficiently high efficiency, the economy can overcome the natural resources relative scarcity and depletion achieve sustainable growth. Theoretical model based on energy as natural resources on behalf of the variable in the 1984-2006 time series data for samples conducted an empirical analysis of the relationship between natural resources and economic growth in China. Found through the analysis of the empirical results, China's economic growth has not been subject to serious constraints of natural resources, investment in physical capital and labor is still the basic source of China's economic growth. However, China's rapid economic growth is based on the cost of high energy consumption, This means that if the extensive growth mode can not be a fundamental change in China's economy is difficult to achieve long-term sustainable growth, which, despite China's economy has been in the market economy reform, energy consumption structure and industrial structure optimization adjustment and energy technology research and development to respond, but the response efforts are still not enough, especially when the efficiency of resource use institutional and structural adjustment improve flatten the role of technological progress to overcome the scarcity of natural resources is particularly important. Finally, based on the conclusions of the above theoretical model and empirical analysis of the results, we are given a number of policy recommendations, and pointed out several possible further research direction.

The Analysis of the Optimal Economic Growth with Constraints of Natural Resources

Abstract

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