Utilising Capital and Labour Force to Increase Economic Growth

Abstract

This research, based on the data of Chinese capital, labor force and economic output from 1978 to 2008, studied the relationship between the allocation of capital and labor force and the relationship between economic growth and them. Economic growth is generally measured by the level of total output, and the production process is inseparable from the input of various production factors. The result pre-sented in the passage is the estimated production function for China during 1978-2008 using the Cobb-Douglas production function model. The Cobb-Douglas production function was used, which is a binary power function linearized by the logarithm and added with random error terms.