Share This Article:

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

Abstract Full-Text HTML Download Download as PDF (Size:633KB) PP. 24-26
DOI: 10.4236/ti.2013.41B005    3,019 Downloads   4,887 Views   Citations


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.


Conflicts of Interest

The authors declare no conflicts of interest.

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.


[1] R.M. Solow, "A Contribution to The Theory of Economic Growth," The Quarterly Journal of Economics, Vol. 70, No. 1, 1956, pp. 65-94. doi:10.2307/1884513
[2] E. Accinelli and J. G. Brida, "Population Growth and the Solow-Swan Model", International Journal of Ecologi-cal Economics & Statistics, Vol. 8, No. S07, 2007, pp. 54-63.
[3] A. Bucci and L. Guerrini, "Transitional Dy-namics in the Solow-Swan Growth Model with AK Technology and Logistic Population Change, B.E. Jour-nal of Macroeconomics, Vol. No. 9, 2009, pp. 1-16.
[4] M. Ferrara and L. Guerrini, "The Ramsey model with logistic population growth and Benthamite felicity function revisited", WSEAS Transactions on Ma-thematics, Vol. 8, 2009, pp. 41-50.
[5] M. Ferrara and L. Guerrini, "A Note on the Uzawa-Lucas Model with Unskilled Labor", Applied Science, Vol. 12, 2008, pp.90-95.
[6] L. Xiang, "The Formation and Applica-tion of China Population Growth Estimation Model", Journal of Henan Institute of Science and Technology, Vol 36, No. 3, 2008.
[7] L. Guerrini, "The Solow-Swan Model with a Bounded Population Growth Rate", Jour-nal of Mathematical Economics Vol. 42, 2006, pp. 14-21. doi:10.1016/j.jmateco.2005.05.001
[8] L. Guerrini, A Closed-form Solution to the Ramsey Model with Logistic Population Growth, Economic Modeling, Vol. 27, 2010, pp.1178-1182. doi:10.1016/j.econmod.2010.03.002.

comments powered by Disqus

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.