Economic Growth with Environmental Pressure: ARC Model and its Applications

Economic growth is an eternal theme that humanity must face, and the development of human society needs to be supported by economic growth. In the process of economic growth, there will always be many difficulties that must be overcome, which we summarize as environmental pressure. Natural disasters, military conflicts, disease outbreaks, economic pollutions, market competitions, policy mistakes, strategic games, resource shortages, financial risks, exchange rate fluctuations and other various challenges in social development, all of these may constitute the environmental pressures. The environmental pressure is ubiquitous,and the evolution of any entity, including economic development and growth, is the active and proactive behavior under environmental pressure, which is akin to “boating against the current”, i.e. you will retreat if you don't advance. This book includes 10 articles published by Feng Dai. In this book, the ARC(advance-retreat course) model has been built, and the ARC model can describe the interactive processes between advancing and retreating. Based on the ARC model, the book analyzes several issues for economic growth and development under environmental pressure, including,under various economic pressures,how to develop new products in traditional industries and how to develop enterprises; how to initiate a new growth process through economic reform and promote effective economic recovery and further growth; how can economic policies promote the transformation of traditional industries and support small emerging industries with growth prospects; how the industrial segmentation promotes economic output growth; what is the basic and optimal evolution of capital and innovation aggregation,in order to promote economic growth; what is the optimal path for promoting long-term growth through changes in economic structure; how to promote import and export growth and achieve bilateral trade balance.This book,based on the ARC model, analyzes and describes these issues separately, provides related solutions, and proposes corresponding implementation strategies.