Economic growth and control strategies under the environmental pressure: Economic advance-retreat course analysis II

Abstract

ARC (Advance-retreat course) analysis is a theoretical analysis and method on socioeconomic development. The main point of ARC is that any economic development behavior will face various pressure coming from environment, that is to say, human beings can actively devise and implement his own economic development strategies, and on the other hand integrative environment formed by all kinds of objective factors can not only passively receive human's choices but aslo human behaviors by the pressure or resistance caused by mankind's behavior. Such dynamic game between human beings and environment is quite different from traditional game problems. Basing on the frame of advance-retreat course (F. Dai, et al, 2007), this paper devises an explanatory model of enterprise development considering environmental pressure according to the basic characteristics of enterprise, develops an analytic model for general advance-retreat course, proves that the solution of the course exists, presents a general method to solve the solution, proposes a series of practical strategies on industry growth control, and particularly draws the important conclusion that faster growing speed will lead to economic growth ending earlier. Finally, the empirical analysis explains ARC to be effective in describing economic growth process, and the controlling strategies for keeping on growth in US economy are given.

Development Power: The Potential Dynamics in Economic Process

“…(ii) The development power in U.S. economy is at a lower degree. Because development power cannot release infi-nitely, U.S. economy may start a larger scale of accumula-tion of development power around 2010, and is corroborated in literatures [19,20,21,22]. This process should be an economic growth with the accumulation of development power, or an economic recession with the accumulation of development power.…”