Determinant of Labor Income with Policy and Institutional Factors - Innovative Management in Information and Production - page 110

4.2 The Second Economic Region

The province whose GDP per capita is between 20,000 RMB and 25,000 RMB
is the so-called the second economic region, which consists of Hebei, Hubei,
Heilongjiang, Ningxia, Shanxi, Shannxi, Henan, Hunan, Sichuang, and Chongqing.
In the second economic region, technological progress is the determinant and has
a linear way considering the policy factors. But under the institutional perspective
and complex perspective, technological progress is no longer the determinant
anymore. These results give us an insight that the institutional factors may coerce
the technological progress becoming the determinant. Under the policy perspective,
trade is not the determinant. Considering the complex factors, trade changes into
the determinant, and the influence is linear. The institutional factors promote the
trade becoming the determinant. Secondary industry is the determinant and has a
linear way under the policy perspective and the complex modeling way. And tertiary
industry is the determinant and has nonlinear way under the policy perspective, but
under the complex modeling method, it has a linear way.

4.3 The Third Economic Region

The province whose GDP per capita is below 20,000 RMB is the so-called the
third economic region, which consists of Guizhou, Gansu, Yunnan, Guangxi, Anhui,
Jiangxi, Hainan, Qinghai, and Xinjiang. In the third economic region, technological
progress is not the determinant. But under the complex perspective, technological
progress is the determinant and has a linear way. The results give us an insight that
institutional and policy factors may promote the developing of labor income in a
mutual way. Under the policy and complex perspective, trade is not the determinant;
secondary industry is the determinant and has a nonlinear way. And tertiary industry
is the determinant and has nonlinear way under the policy perspective, but under
the complex modeling method, it is not the determinant anymore. The coercion of
institutional factors to labor income is evident.

5 Conclusion

5.1 Institutional Factors May Restrict the Variables

to be Irrelevant

Technological progress, using the national data, is the determinant, but is not the
determinant using the provincial data. Technological progress is the determinant
and has a linear way in the first and third economic regions under the complex
perspective.

In the second economic region, technological progress is the