Econometrics Analysis on Rate of Safety Economy Contribution in China

Rational and exact computation of the rate of safety economy contribution is of great importance in directing national safety investment and macro decision-making on safety. In order to accurately compute the rate of contribution to overcome the limitation of past empirical evaluation, an econometric model is established, from which more accurate functional relationship between safety input and output is obtained. A result of increasing reward of production safety in China is obtained. It is on this basis that the predicted rate of safety economy contribution of 3.01% and the predicted input/output ratio of 1.00:1.81 in China in 2005 are obtained through an established time sequence analysis model. From above predicted results it could be seen that the econometric model is satisfactory, which is significant in directing the national macro decision-making on safety in certain extent.