Open AccessEvaluation of the Contributions of Four Components of Gross Domestic Product in Various Regions in China
Author(s) -
Sanmang Wu,
Yalin Lei,
Li Li
Publication year - 2015
Publication title -
plos one
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.99
H-Index - 332
ISSN - 1932-6203
DOI - 10.1371/journal.pone.0121594
Subject(s) - gross domestic product , china , consumption (sociology) , investment (military) , mandate , product (mathematics) , gross national income , gross domestic income , economics , domestic market , international trade , gross fixed capital formation , business , geography , economic growth , market economy , political science , social science , geometry , mathematics , archaeology , tax reform , sociology , politics , gross income , law , state income tax
Four major components influence the growth of the gross domestic product in Chinese provinces: consumption, investment, transnational exports, and inter-provincial exports. By splitting a competitive input-output table into a non-competitive input-output table, this study used an input-output model to measure the contributions of the four components of gross domestic product in various regions in China. We found that international exports drove the growth of the gross domestic product more strongly in the eastern region than in other regions. Investment and inter-provincial exports were the major impetus for gross domestic product growth in the central and western regions. We also found that consumption played a minimal role in driving the growth of the gross domestic product in all regions in China. According to these findings, although various regions can share much in terms of policies to transform the impetus for economic growth, there should be different foci for different regions. Their shared policy is to increase the role of final consumption in stimulating economic growth. Region-specific policies mandate that the eastern region should strengthen the driving force provided by international exports and that the central and western regions should strengthen indigenous growth capabilities by improving scientific innovation, industrial support, and institutional innovation.