Abstract:
With structural decompose analysis (briefed as SDA), the author decomposed Chinese economic growth between the periods of 1987-1997 and 1997-2007 into three effects: demand expansion effect from the industrial perspective, value added ratio effect and technical progress effect and calculated their contribution rates to economic growth. Empirical analysis indicates that the period of 1987-2007 sees great changes in the driving mechanism of Chinese economic growth, shifting from single reliance on demand expansion to coordination of demand expansion, value added ratio improvement and technical advancement. This study suggests that stability of Chinese economic growth as well as its quality and efficiency has been gradually enhanced. As Chinese economic growth still has great potential, the author finally put forwards relevant suggestions for making policies.