Economic vitality is an important indicator to measure the level and potential of economic development. The paper puts
forward three social problems about economic vitality and establishes a model to solve them. We build panel data model to analyze
the influencing factors of economic vitality. Based on the section data of Beijing, the VAR-VEC model is established to analyze the
long-term and short-term effects of economic policies on economic vitality. The development strategy of ORT is put forward, and
the scheme to promote the growth of economic vitality is given during the COVID-19 epidemic.
For the first problem, the paper preprocess panel data, and test its independence, and find that each factor is not independent
of each other. Through the correlation analysis, we found that there is a strong correlation between the various elements. After
Random Effect Test and Fixed Effect Test combined with Hausman Test, the data panel conforms to fixed effect model. Population
change and enterprise vitality have a positive impact on economic vitality, the influencing factors are 0.01 and 0.07 respectively. We
put forward the strategy of adjusting the overall structure of enterprises to improve economic vitality.
For the second problem, the paper select the section data of Beijing city and construct the VAR-VEC model. Based on ADF unit
root test and Johansen co integration test, we find that there are at least three co integration relationships between time series. We
use Ais-Sc Criterion to determine the order of delay as the third order. We use OLS estimation method to get the coefficients of VEC
Model. Through the IRF response, we find that the long-term impact of economic policy on economic vitality is positive correlation
effect. Due to the effect of experience accumulation, the economic vitality presents a W-shaped trend.
For the third problem, the paper use the minimum average deviation method to preprocess the index data, and get 9
representative indexes. We extract two main factors by factor analysis and build an index system of economic vitality. The economic
vitality of each city from 2009 to 2017 is calculated according to the index system. Beijing, Shanghai, Guangzhou and Shenzhen often
rank first, while Kunming and Dongguan often rank last. Based on the same data, the panel data model test results are similar to
For the fourth problem, we review the previous conclusions and put forward the ORT development strategy to improve economic
vitality based on the established model.
Keywords: Panel data model; VAR-VEC model; Factor analysis; Index system