Technology and Investment

Volume 4, Issue 1 (February 2013)

ISSN Print: 2150-4059   ISSN Online: 2150-4067

Google-based Impact Factor: 0.94  Citations  h5-index & Ranking

A Localization of Solow Growth Model with Labor Growth Pattern in China

HTML  Download Download as PDF (Size: 633KB)  PP. 24-26  
DOI: 10.4236/ti.2013.41B005    4,809 Downloads   6,808 Views   Citations
Author(s)

ABSTRACT

This paper investigates the Solow Growth Model on a country-specific level by applying the demographic growth pat-tern in China to it. To localize the neoclassic model, China population growth estimation function based on the Verhulst Population Model is introduced to transform the population growth rate from a constant to a function, altering the orig-inal model assumption. By inserting the population growth function into Solow's work, an economy growth phase dia-gram for China is obtained. MATLAB programming is used to depict the diagram in a three-dimensional space and to show that the set of optimal capital-labor ratio values lies in the intersecting line of two planes rather than in the inter-secting point of two curves in the original model setting. An neoclassical aggregate feasible growth path for China's economy can be depicted based on a chosen optimal value. The dynamic equilibrium in this case should not be unique; instead, capital-labor ratio together with population growth situation at a certain time point should be jointly taken into consideration to solve the optimization problem in the country's long term economy development.

 

Cite this paper

W. Wanxin and G. Zequn, "A Localization of Solow Growth Model with Labor Growth Pattern in China," Technology and Investment, Vol. 4 No. 1B, 2013, pp. 24-26. doi: 10.4236/ti.2013.41B005.

Copyright © 2020 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.