# Analysis of Potential Factors Influencing China's Regional Sustainable Economic Growth
## 6 Conclusions  
Firstly, the Lasso regression method has obvious advantages when there are problems such as multicollinearity among variables. Comparing ordinary least squares estimation, stepwise regression, ridge regression, and Lasso regression methods, it can also be observed that the least squares method cannot achieve variable selection criteria and the error is more prominent. The variables retained by stepwise regression are all significant, although there is excessive censoring of variables, making the estimation error larger. Lasso regression censors all insignificant variables and reduces the bias as much as possible in the variable selection. Secondly, the consumption level plays a pivotal role in China's economic development. The Lasso regression results show that for every 1 percentage point increase in consumption level, the domestic economy will grow by 0.6542 percentage points. In terms of demand, consumer demand makes the greatest contribution to economic growth. However, due to the COVID-19 crisis, decreased consumer demand led to a decline in GDP in the first quarter of 2020, accounting for 4.3 percentage points of the 6.8% decline in GDP. In other words, more than 60% of the decrease in GDP was driven by consumer demand for the whole year of 2020. Consumer demand represents 0.5 percentage points of the decline in GDP. From 2013 to 2019, about 60% of GDP growth on average was driven by consumer demand. Whether in the past phase of high economic growth or today's economic shift to high-quality development, residential consumption has played a critical role in China's financial development (Research Group of Macroeconomic Analysis and Forecast, 2021). Thus, it is necessary to further develop the fundamental effects of residential consumption on China's economic growth and improve economic efficiency and economic development. Thirdly, paying attention to the cultivation and development of the tertiary industry is important. The results of the Lasso regression show that each unit of growth in the tertiary sector can bring 0.63368 units of change in the size of China's economy. Related studies have showed that the tertiary industry is a dominant force driving economic growth [44]. Starting from 2012, the share of the tertiary sector of GDP reached 45.5%, surpassing for the first time the secondary industry, which had been a pillar in the past, thereby becoming the main driving force in China's economic development. In 2019, the share of the tertiary sector even increased to 54.3%, showing vigorous growth. Therefore, in the next phase, the role of the tertiary industry in boosting China's economic growth needs to be fully exploited. Fourthly, real estate market investment is weak and its contribution to economic development is not significant. In the primary stage of urbanization, the increase in and development of the real estate industry were conducive to urban and economic expansion. However, with China's current economic development model, urbanization has shifted to a stable stage and the real estate market has become increasingly saturated. As a result, the role of real estate investment in driving China's economy is gradually weakening; it cannot continue to vigorously support and advance the urban economy. On the other hand, a reasonable share of the real estate industry is beneficial to economic growth. Therefore, China should reduce its over-dependence on the real estate industry and scientifically assess the percentage of the real estate industry in China's economic growth. Fifthly, the effect of research and development expenditure on economic growth is not significant. One of the reasons may be that the role of fiscal science and technology spending has a time lag. Science and technology spending positively promotes technological progress, which can directly and indirectly influence China's economic growth through capital formation and trade. Whether the effects are direct or indirect, they take a certain amount of time to show their impact, so there is bound to be a time lag.