Contribution of Land Element to Economic Growth in Shanxi Province

This paper,based on C-D production model,establishes the theory model of land and economic growth and calculates the contribution rate of land element to economic growth of Shanxi Province.The result of the analysis indicates that the regression coefficients of the capital,land and labor elements are respectively 0.6218,2.7731 and 2.0587 and that the investment of land element is most elastic,which implies that an increase of 1 percent of land input would lead to a 2.7731 percent increase of economic growth in Shanxi Province.From the point of contribution rate,the capital element contribution rate to economic growth is the highest,which is 64.54 percent,the second one is land element,which is 18.64 percent,and the third one is labor,which is 12.88 percent.At the same time,from the elasticity of substitution,it is somehow difficult to replace land element with capital and land input.Finally,the paper puts forward the policy advice in terms of the capital,land and labor for the purpose of promoting economic growth of Shanxi Province.