# Analysis of Potential Factors Influencing China's Regional Sustainable Economic Growth
## 2 Literature Review  
The strong driving force of the Chinese economy has played an essential role in developing the global economy. Government policies enhance growth if geared toward ensuring more market competition and maintaining innovation in products and services within an economy. Economic growth is defined as an appreciation in the value of a country's economic goods and services, which results in increased financial gain for enterprises. Stock values increase substantially, providing businesses with extra capital to invest and employ more people. GDP has the limitation of not accounting for environmental cost. Expansionary monetary and fiscal policies could contribute to deficit spending, increased public debt, and slower economic growth. Thus, the critical determinants of economic development, including human resources, natural resources, capital formation, and technology, are adequately harnessed to yield development. According to the economists, these policies of the various stakeholders are attributed to a series of relevant theories in comprehending the economic factors that drive economies. The most widely used economic growth theories that help explain a nation's economic growth are the classical growth theory, endogenous growth theory, and neoclassical theories [14]. This present study was founded on these ideologies, which helped in selecting and analyzing the study indicators. According to the classical growth theory, a nation's economic growth slows down as its population grows and resources become scarce. Such a presupposition is indeed an implicit assumption of the classical growth concept, indicating that a temporary increase in real GDP for every individual invariably leads to a rising population, limiting a country's resources, and as a result reducing real GDP. As a consequence, the economic growth rate of the country will begin to decline [15]. Additionally, the fertility rates in most developed countries and some developing countries are at a sub-replacement state, leading to concerns about the sustainability of economic growth in these countries. However, the studies by [PERSON] and [PERSON] [16] posited that the population growth rate is positively correlated with economic growth. [PERSON] et al. [17] constructed a generalized ridge-partial least squares regression method and selected 12 variables to analyze the factors affecting China's economic growth from 1980 to 2000. Their research conclusions showed that population growth hindered China's economic growth. The aging population would lead to a decline in economic development, a severe problem that China is facing [17]. However, there could be long-term coexistence between population decline and sustained economic growth [18]. In addition, well-educated elderly individuals can positively influence China's economic growth and partly alleviate the adverse effects of population aging. Therefore, the potential positive effects of population aging cannot be ignored [19]. Studies on the relationship between population growth rate and economic development have been conducted by academics, demonstrating that the population growth rate in China has stabilized in recent years [20; 21]. The long-run growth rate of output per capita can be positive regardless of whether the population growth rate is positive or negative, depending on the conditions. Sustainable economic growth can be achieved even in an economy with non-renewable resources and a declining population [22]. With the implementation of China's family planning policy, the population growth rate has stabilized, as described earlier; hence, this study does not include population growth as an explanatory variable. [PERSON] and [PERSON] [23] performed an investigation from 2000 to 2010 in China, using gray correlation analysis to empirically analyze the factors influencing China's economic growth and designing a gray correlation ranking table. The empirical results showed that domestic trade development has the most significant impact on China's economic growth.