Factor Input of Three Industries and Economic Growth in China: Based on Ridge Regression

Capital,labor and energy are taken as input factors. Based on Cobb-Douglas production function including investment structure of production factor in three industries,this paper analyzes the relationship between factor input and economic growth,and calculates the impact of inter-industry factor mobility on economic growth. The results show that factor output efficiency of tertiary industry is higher than that of primary and secondary industries while output elasticity coefficient of labor is greater than capital and energy in terms of elastic coefficient. In terms of factor input,reconfiguration of elements among the three industries has growth effect under the established total amount of elements condition. Capital growth share of tertiary industry comes from secondary industry and input shares of labor and energy totally come from primary industry,which can reach the output maximization.