• International Area Studies Review
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• v.15 no.2
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• pp.151-173
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• 2011

The purpose of this paper is to examine the impact of production factors on economic growth in China during 1979~2008. In order to grasp the determinant and contribution analysis, we take fixed effect model and random effect model and Hausman test to choice model. The results show that the finance variable (rsav) and SOC variable (rsoc) have negative effects on the economic growth in the long run except some models. But unimproved raw labor variable (rlab), physical capital variable (rcap) and education variable (redu) shows strongly positive effect for the same time. We found the meaning of coefficients of growth factors. relative contribution of each input to per-capita growth in China. The direct elative contribution of physical investment to per-capita growth gives 35.9 percent in total model (TMO) and unimproved raw labor contributes only 4.7 percent. In all modes, physical investment (rcap) was the most important contributor of predicted growth in China economy.