CO-INTEGRATION MODEL OF INNOVATION AND ECONOMIC GROWTH (TAKING INTO ACCOUNT THE EXPERIENCE OF CHINA)

Abstract

Innovations have been the driver of the growth of economic indicators of any country throughout the entire period of human development. At the same time, they contributed to the improvement of people's living conditions, since they included the appearance of novelties in science and technology that simplify people's lives. Innovations have transformed the economy to a higher level than that of the previous generation. In addition, innovations always have certain interests on the part of investors, an increase in activity among which strengthens the country's position and its role in the international market. It is the development of innovations that makes it possible to increase the pace of economic growth of the country, including the trends of GDP growth and the increase in other indicators important from a macroeconomic point of view. At the same time, the relationship between these indicators is not always proportional, since in some situations it can be reversed. In this article, the cointegration model of the impact of innovations on economic growth indicators is considered, which provides for the possibility of identifying factors and interrelations of these phenomena. The study of the model is considered on the example of China, which has a huge innovative potential and in recent years has shown the greatest growth in GDP and other indicators of economic growth, which in other countries, on the contrary, are declining. At the same time, it was China that chose the path of innovative development of its economy, which contributes to achieving the macro-economic goals set by the government of the country and achieving high economic growth rates.