Research on Application of Compensative GM (1, N) Model in Technical Input Analysis: Evidence from Henan Province in China

摘要

Based on the statistics from 1998 to 2005 released by Henan Statistical Bureau in China, this paper applies the compensative GM (1, N) model to simulate the relationship between technical input and economic growth. In this paper, the parameters of the system are obtained via the Principle of Least Square Method. In the numerical experiment, the model simulates the GDP values of Henan province from 1998 to 2005. Research results show that the compensative GM (1, N) model has a high precision, and could provide valuable information to policy makers in their efforts to make efficient technical policies for promoting economic growth.