Effect of total resource allocation effect and economic growth:Chinese experience of 1978-2004

The analytical method of total resource reallocation effect is an evolution of the analytical method of the factors of economic growth. Since the marketization reform in China in 1978, market mechanism has played a more and more important role in resource allocation, and Chinese economy has developed greatly, which is called "the Chinese Miracle". This paper analyzes the economic growth in China from 1978 to 2004 with the analytical method of total resource reallocation effect. The result shows that the annual growth rate of total resource reallocation effect was 0.2%, which was 5.1% of the comprehensive productivity and 0.21% of the gross output growth, i.e. the total resource allocation played a weak role in the economic growth in China. When analyzing it in Chenery's multinational model, we find that Chinese comprehensive productivity growth rate was higher than that in all the income phases of the model, but the total resource allocation effect was obviously lower than that in all the income phases of the model. It indicates that the total resource allocation in China has a great potential, and that to accelerate marketization reform is one of the important issues for Chinese economic development.

Economic Growth:Theoretical Arguments about Resources,Environment and the Limit Issue & the Choices Faced by the Human Being

The relationship between man and nature seems highly diverse during the evolving process of human society. Numerous destructive consequences incurring from the carly stage of the industrialization led to man＇s severe concern about ecological and environment issues. In 1972, a book entitled “The Limits To Growth” ushered in a worldwide argumentation campaign, and forced man to realize that the bearing capacity of ecological surroundings is finite, and the quantity of resources is numbered as well. Admittedly, the human advance in science and technology, from the long-term viewpoint, is capable of discovering new types of energy and resources. However, each specific period of human history is always endangered due to the crisis of energy and resources. Therefore the core of the retainable development lies in variation of the outdated pattern of economic growth as well as pursuit to the new substitutes.

Elasticity Ratio of Resource Consumption and the Resource Consumption

Today the resources are becoming scarcer, which should not be regarded as unexhausted any more. Correspondingly, the production would be constrained by the scarcity of resources clearly. Then the economic researchers would pay much more attention to reducing the consumption of natural resources in the future. Therefore this paper brings foreword the conception of elasticity ratio of resource consumption based on the concept of elasticity and analyzes the relationship between the parameters. For the certain relationships between the elasticity ratio of resource consumption and resource consumption, this paper will try to reveal, to keep economy growing while resource consumption reducing, what conditions should be met as to the relationships among resource productivity, its growth rate, energy saving efficiency, economic growth rate and elasticity ratio of resource consumption. This paper proves the relationship between the China＇s energy consumption and economy growth using statistic data from 1978 to 2003.