Research on the Influencing Factors of Beijing’s GDP

Abstract

This paper aims to discuss the factors affecting Beijing’s GDP. The data of this paper comes from the Beijing Statistical Yearbook. By reviewing relevant literature, this paper selects five variables with the highest probability and uses the method of multiple linear regression to analyze these five variables in Beijing in 1999-2018. Considering that the variables will affect each other, this paper also adopts the stepwise regression method to solve the problem of multicollinearity. The final results show that import and export trade and the total retail sales of social commodities in Beijing have a significant impact on Beijing’s GDP. In contrast, the total investment in fixed assets, resident population, and total energy consumption do not pass the significance test. In conclusion, Beijing’s GDP is affected by import and export trade and total retail sales of social commodities in Beijing. Beijing should pay attention to the development of these two factors to further improve its economic strength and competitiveness.