The impact and contribution of the management factors on economic growth in China:The theory and empirical analysis

Abstract

Abstract: Being one of new classical four production factors, the management factor has the important impact on economic growth. In order to study the effects of management factor, the process of entrepreneurial knowledge spillover is selected as the angle of view of study. Theoretically, by defining the management factor as one of knowledge resource, the increasing-returns and accumulation characters of the management factor are described. Combining with the spillover mode of entrepreneur knowledge, the process that the management factor takes effect is discussed. The fact that management factor input is used as one of implementation mechanism bring about technical progress is elaborated, output elastic change involving three factors of management, capital, and labor might exist the regularity. Among the technical progress, the production contribution of management factors would be in direct proportion with the labor factors while it is in inverse proportion with the capital factor. In empirical analysis, the variable of type and endowment of entrepreneur is introduced into the production function of per capita, And by using provincial panel data in China, the contribution of the number of SME's entrepreneur and big firm's entrepreneur to per capita industrial production is studied. The result indicates that the SME's per capita contribution to growth of per capita industrial production is 38.5 percent, and the big firms' contribution is 61.5 percent, while the SME's contribution to gross industrial production is 60 percent, and the big firms' contribution is 40 percent. The SME's per capita contribution is inferior to the big firms, the reason for the fact is that the management efficiency of SME is inferior to that of the big firms, such inference might result from that per capita profit is used to substitute for the entrepreneur ability.

Key words: China’s economic growth, management factor, entrepreneur ability

CLC Number:

F061.2

Shen Kunrong, Zhou Weimin. The impact and contribution of the management factors on economic growth in China:The theory and empirical analysis[J]. Science Research Management, 2012, 33(5): 153-160.

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