Analysis on Beijing's Economic Structure
Wei Liu
Abstract
Wei Liu
Abstract
From the positive analysis on Beijing's economic structure, we find that the growth of Beijing's economy is primarily pulled by the industry, because the development of industry will enlarge the size of production and improve the output efficiency of capital. Therefore, from the view of the economic growth and adding finance income, government has the incentive to develop industry. But the national capital has almost operated from the market rule, getting more profit as it could get. So it does not operate in behave of labor. Therefore, the benefit of the economic growth which pushed by national capital will not be distributed to labor by market. So when government drives the economic growth, it must be complement by another way of income distribution.
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From the positive analysis on Beijing's economic structure, we find that the growth of Beijing's economy is primarily pulled by the industry, because the development of industry will enlarge the size of production and improve the output efficiency of capital. Therefore, from the view of the economic growth and adding finance income, government has the incentive to develop industry. But the national capital has almost operated from the market rule, getting more profit as it could get. So it does not operate in behave of labor. Therefore, the benefit of the economic growth which pushed by national capital will not be distributed to labor by market. So when government drives the economic growth, it must be complement by another way of income distribution.
Key concepts: Beijing, Economics, Incentive, Profit (economics), Government (linguistics), Distribution (mathematics), Capital (architecture), Production (economics)