The Analysis of Contributing Factors to the Differences of the Regional Economic Growth

The theoretical model of the relationships between saving growth, investment growth and economic growth is established by synthesizing the existed economic theories and the china's economic realities, and its conclusions are compared with the results from the empirical study using Granger causal test. The contrasts show that their relationships are in accordance with the model's conclusion in east region, that is, there exists a fine cycle among investment increase, economic growth and saving growth. However, the fine cycle doesn't exist in central region and west region because of the low efficiency of investment in the central and the deficiency of the capital supply in the western. It is one of the main reasons that the regional economic differences broaden rapidly.