On the Economic Growth Rate and Economic Efficiency

Economic growth rate and economic efficiency are different and closely related concepts. The economic growth is the comparison of added value between two periods, while the economic efficiencey is dealing with the comparison of profits and total costs between two periods. In long run, the economic efficicncy is the base of economic growth, for that the continue economic growth depends on the investment coming from profit mainly, while only the improvement of economic structure and raising of technology level can supply higher profit rate and sufficient investment. But in short run, lower growth rate surely means lower efficiencey, for that the rigid cost problem can not be overcome in the short run . To keep a higher economic growth rate also is the precondition for countries with surplus labor to get the target of social stable. The characteristic of China has decided that, China must coordinate better the relations between the technology improvement and the broadly taling use of labor.