{"id":1468,"date":"2016-12-18T19:56:00","date_gmt":"2016-12-19T00:56:00","guid":{"rendered":"https:\/\/beizhanliu.com\/?p=1468"},"modified":"2026-04-19T18:10:24","modified_gmt":"2026-04-19T22:10:24","slug":"economic-wheel-economic-theory-beizhan-economic-potential-energy-theory-together-on-the-concept-of-economic-wheel-%e7%bb%8f%e6%b5%8e%e8%bd%ae-%e7%bb%8f%e6%b5%8e%e7%90%86","status":"publish","type":"post","link":"https:\/\/beizhanliu.com\/?p=1468","title":{"rendered":"Economic Wheel \u2013 Economic Theory \u2013 Beizhan Economic Potential Energy Theory Together on the Concept of Economic Wheel \u7ecf\u6d4e\u8f6e \u2013 \u7ecf\u6d4e\u7406\u8bba \u2013 \u5907\u6218\u7ecf\u6d4e\u52bf\u80fd\u7406\u8bba \u517c\u8bba\u7ecf\u6d4e\u8f6e\u7684\u6982\u5ff5"},"content":{"rendered":"


\n<\/p>\n

<\/p>\n

\nEconomic Wheel \u2013 Economic
\nTheory \u2013 Beizhan Economic Potential Energy Theory<\/span><\/h3>\n

\nTogether on the Concept of Economic Wheel<\/span><\/h3>\n
\n\u7ecf\u6d4e\u8f6e <\/span><\/b>\u2013 \u7ecf\u6d4e\u7406\u8bba <\/span>\u2013 \u5907\u6218\u7ecf\u6d4e\u52bf\u80fd\u7406\u8bba<\/span><\/span><\/b><\/div>\n
\n<\/div>\n
\n\u517c\u8bba\u7ecf\u6d4e\u8f6e\u7684\u6982\u5ff5<\/span><\/b><\/span><\/b><\/div>\n
\n<\/div>\n
\n<\/div>\n
\n<\/a><\/div>\n
\n
\n<\/p>\n

<\/p>\n

\n<\/div>\n
\n1.     
\n<\/span><\/span><\/span><\/b>Economic Phenomenon<\/span><\/b><\/div>\n
\n
\nWe always talk about \u201cthe difference between urban and rural areas\u201d, we always
\ntalk about this area is \u201ceconomically developed areas\u201d, that area is
\n\u201ceconomically underdeveloped areas.\u201d So, how to describe an area or a country’s
\neconomy as developed and underdeveloped in economics? What kind economic
\nindicator should be used to compare the current status of advanced level of
\neconomic development of a region, a country or an industry? Here I would like
\nto put forward the concept and theory of
\neconomic potential energy (Beizhan Economic Potential Energy Theory)<\/b> to comprehensively analyze and elaborate the
\ncomparison of the advanced level of economic development<\/b> and use this
\ntheory to provide clear guidance for regional economic development and regional
\neconomic cooperation, trade and investment. Economic potential energy concept
\ncan be regarded as the eleventh evaluation index in national economic
\nevaluation system, that is, the
\nadvancing indicator of economic development<\/b>.<\/span><\/div>\n
\n
\n2. Existing Concepts<\/b><\/span><\/div>\n
\n
\n<\/span><\/b>On economic development level of an area, there are
\nseveral concepts:<\/span><\/div>\n
\n
\n1). Economic development level<\/b><\/span><\/div>\n
\n
\n\u201cEconomic development level refers to the scale, speed and economic development
\nlevel of a country. General indicators that reflect a country’s economic
\ndevelopment level include gross national product, national income, per capita
\nnational income, economic development speed and economic growth speed.\u201d [1]<\/sup>.
\nThis is a comprehensive concept of national economic development status, it can
\nnot accurately reflect the degree of economic development of a country or
\nregion. It can not be used to compare the advancing level of economic
\ndevelopment. This concept can not leap from macro-economy to micro-economy, and
\ncompare the advancing level of specific product or industry economic
\ndevelopment. The concept itself also includes a number of subordinate concepts.<\/span><\/div>\n
\n
\n2). Economic growth degree<\/b><\/span><\/div>\n
\n
\n<\/span><\/b>Currently there is no specific definition of economic
\ngrowth degree; the level of economic growth degree in each country in the world
\nis mainly compared with GDP [2]<\/sup>.

\n

\n<\/span><\/div>\n
\n3). Existing economic
\npotential energy concept<\/span><\/b><\/div>\n
\n
\nToday there are also a lot of people talking about economic potential energy,
\nbut the concept is completely different. For example, economic potential energy
\nconcept, as described in the published paper by Yong Yang et al. in Shanghai,
\n China in 2007<\/b>,
\nis \u201cto use the gross domestic product (GDP) of a center city as a basic measure
\nstandard of its economic potential energy. If the central city\u2019s GDP is high,
\nit means that its economic potential energy is big.\u201d. Here is another example, in 2009, Huili Huang from Hangzhou,<\/b> China<\/b>, gave following definition in her
\npublished paper: “Due to different economic conditions, trading conditions
\nand resource allocation, different economic bodies will have different
\npositions and potentials comparing with other economic bodies in the economic
\ntrading process, different economic bodies mutually effect, mutually restrain,
\nmutually interact in the spatial economic field, the economic potential energy
\nrelation decided by relative position of the interacted economic bodies in the
\neconomic space field is the potential
\nenergy<\/b> in the economic space field we define.<\/span><\/div>\n
\n
\nThese two economic potentials are not able to reflect the advancing nature of
\neconomic development, and they both are only for macro-economic area, can not
\ncover micro-economic area. The first concept is entirely a replica of the
\ncity’s GDP, and the definition of the second concept is unclear because the
\nposition and potential of the economic bodies included therein are unclear. The
\nguidance meaning of these two concepts for the real economy is relatively weak.
\nThese two concepts are also deviated from “touchable fact-based economics<\/b>” what I have always advocated.<\/span><\/div>\n
\n
\n3. Beizhan Economic Potential Energy
\nTheory<\/b><\/span><\/div>\n
\n
\n3.1. The due concept of economic potential energy<\/span><\/b><\/div>\n
\n
\nEconomic potential energy should be an evaluation index to reflect advancing
\nnature of the development of national economy, regional economy, industry or
\nproduct economy. It should be an economic indicator to measure economic
\ndevelopment. Economic potential energy can be calculated and compared based on
\neconomic reality.<\/span><\/b> The definition of economic potential
\nenergy should be based on specific scope and give specific definition.<\/span><\/div>\n
\n
\n3.2. Definition of economic potential
\nenergy<\/b><\/span><\/div>\n
\n
\n3.2.1. Definition of product economic potential energy<\/span><\/b><\/div>\n
\n<\/div>\n
\n      The economic potential energy of a single product is defined as the
\ncomprehensive index of the advancing nature of a product consumed by consumers
\nin a given economic space (such as: country, province, city, region, county,
\netc.) within a certain statistical period of time (such as: one year).<\/span><\/div>\n
\n
\n3.2.2. Definition of industry potential
\nenergy<\/b><\/span><\/div>\n
\n<\/div>\n
\n     The economic potential energy of an industry is defined as the
\ncomprehensive index of the advancing nature of the key technologies utilized by
\na specific industry in a given economic space (such as: country, province,
\ncity, region, county, etc.) within a certain statistical period of time (such
\nas: one year).<\/span><\/div>\n
\n
\n3.2.3. Definition of economic potential
\nenergy of service product<\/b><\/span><\/div>\n
\n
\n<\/span><\/b>The economic potential energy of a single service product
\nis defined as the comprehensive index of the advancing nature of the key
\ntechnologies utilized by the service providers in a given economic space (such
\nas: country, province, city, region, county, etc.) within a certain statistical
\nperiod of time (such as: one year).<\/span><\/div>\n
\n
\n3.2.4. Definition of potential energy of
\nservice industry<\/b><\/span><\/div>\n
\n
\n<\/span><\/b>The economic potential energy of a service industry is
\ndefined as the average economic potential energy of the key service products
\nprovided by that specific service industry in a given economic space (such as:
\ncountry, province, city, region, county, etc.) within a certain statistical
\nperiod of time (such as: one year).<\/span><\/div>\n
\n
\n3.2.5. Definition of regional economic
\npotential energy<\/b><\/span><\/div>\n
\n
\n3.2.5.1. Regional product economic potential energy (regional social-economic
\npotential energy)<\/span><\/b><\/div>\n
\n
\n<\/span><\/b>Regional product economic potential energy (regional
\nsocial-economic potential energy) is the sum of the economic potential energy
\nof key consumer products used by consumers in a region.<\/span><\/div>\n
\n
\n3.2.5.2. Regional industry economic
\npotential energy <\/b><\/span><\/div>\n
\n
\nRegional industry economic potential energy is the sum of the economic
\npotential energy of the key industries in a region.<\/span><\/div>\n
\n
\n3.2.5.3. Economic potential energy of a
\nregion<\/b><\/span><\/div>\n
\n
\nThe economic potential energy of a region is the sum of economic potential
\nenergy of the key consumer products used by consumers and the economic
\npotential energy of the key industries in a given economic space \/ region (such
\nas: country, province, city, region, county, etc.) within a certain statistical
\nperiod of time (such as: one year).<\/span><\/div>\n
\n
\n3.2.6. Definition of macroeconomic
\npotential energy<\/b><\/span><\/div>\n
\n
\n<\/span><\/b>Definition of macroeconomic potential energy is
\nequivalent to the definition of regional economic potential energy.<\/span><\/div>\n
\n
\n3.2.7 Definition of key consumer
\nproducts<\/b><\/span><\/div>\n
\n<\/div>\n
\n      Key consumer products should mainly include products closely related to
\nconsumers’ daily life (clothing, food, housing and transportation), such as:
\ninformation and communication products (computers, mobile phones), household
\nappliances (refrigerator, color TV, air conditioner, microwave oven, washing
\nmachine, etc.), transportation means (high-speed rail, bus, automobile, bicycles,
\netc.), energy (electricity, solar energy, etc.). Since this theory is a new
\nproposal, the specific details need to be further improved.<\/span><\/div>\n
\n
\n3.2.8. Definition of key technologies<\/b><\/span><\/div>\n
\n
\n<\/span><\/b>Definition of key technologies is related to the
\nindustry. Generic management techniques can also be classified as key
\ntechnologies. The specific details need further research and study, further
\nimprovement. In service industry, management technology and management model
\nmay occupy a large proportion.<\/span><\/div>\n
\n
\n3.2.9. Definition of key industries<\/b><\/span><\/div>\n
\n
\nKey industries within an economic space refer to the top few industries with
\nbest economic benefits. It is the same for key service industries.<\/span><\/div>\n
\n<\/div>\n
\n      3.3. Calculation of
\neconomic potential energy<\/span><\/b><\/div>\n
\n
\n<\/span><\/b>Calculation of economic potential energy is based on accurate
\nmarket statistics, and the calculated time period should be decided according
\nto the statistics time period and the required time period. Generally, the
\ncalculation period is one year.<\/span><\/div>\n
\n
\nOn calculation method, here involves two points: one is the selection of key
\nconsumer products, one point is the determination of the technology advancing
\nlevel. My approach is: key consumer products can be selected in accordance with
\nthe method of tightness of life<\/b>, the
\nadvance nature of technology can be determined in accordance with the
\nclassification of technological progress. Of course, if experts inside the
\nindustry can propose a better method of calculation, it should be encouraged.<\/span><\/div>\n
\n
\n3.3.1. Selection of key consumer
\nproducts – life tightness method<\/b><\/span><\/div>\n
\n
\n<\/span><\/b>As mentioned above, key consumer products should mainly
\ninclude products closely related to consumers’ daily life (clothing, food,
\nhousing and transportation), such as: information and communication products
\n(computers, mobile phones), household appliances (refrigerator, color TV, air
\nconditioner, microwave oven, washing machine, etc.), transportation means
\n(high-speed rail, bus, automobile, bicycles, etc.), energy (electricity, solar
\nenergy, etc.). To simplify the
\ncalculation, selecting 10 key consumer products is ok.<\/b><\/span><\/div>\n
\n
\n3.3.2. Determination of key industries –
\neconomic benefit method<\/b><\/span><\/div>\n
\n
\nKey industries within an economic space refer to the top few industries with
\nbest economic benefits. To simplify the calculation, selecting six key industries is ok<\/b>. The so-called best economic
\nbenefit means higher return on profit and tax to the economic space, this is
\nthe economic benefit method<\/b>.<\/span><\/div>\n
\n
\n3.3.3. Determination of technological
\nadvancement – classification method of technology progress<\/b><\/span><\/div>\n
\n
\n<\/span><\/b>Each key technology can be divided into 10 initial levels
\naccording to current international status; the weight value of each level is
\nits rank value. For example: mobile phones have big brother level, flip level,
\ntablet level, intelligent level, 3G, 4G, 5G, and so on. When a new technology
\nis available, it can be defined as level 11. This is the classification method of technology progress<\/b>. Of course, 10
\ntechnology levels exist in a market at the same, is relatively rare.<\/span><\/div>\n
\n
\n3.3.4. Determination of key technology
\nin an industry – classification method of technological progress<\/b><\/span><\/div>\n
\n
\n<\/span><\/b>The above classification method of technological progress
\ncan also be also applied to the determination of key technology industries. The
\nmanagement technology in key industry technology is applicable all industries.
\nAdvanced management facilities is the embodiment of advance nature of
\nmanagement technology, advanced management thinking is also the embodiment of
\nthe advance nature of management technology.<\/span><\/div>\n
\n
\n3.3.5. Calculation of product economic
\npotential energy<\/b><\/span><\/div>\n
\n
\n               <\/span>10<\/b><\/span><\/div>\n
\n     Single
\nproduct economic potential energy = \u03a3 Product <\/span><\/b><\/div>\n
\n  <\/span> <\/span>                                                         <\/span>    <\/span>1 <\/span><\/b><\/div>\n
\n    advancement
\ngrade value XTotal number of users of the product with the advancement grade
\nvalue \/ total number of users of the product X 1000<\/span><\/b><\/div>\n
\n<\/div>\n
\n     3.3.6. Calculation of
\neconomic potential energy of industry<\/span><\/b><\/div>\n
\n
\nEconomic potential energy of an industry = the comprehensive index of the
\nadvancing nature of 10 key technologies utilized by average 1000 enterprises in
\na specific industry in a given economic space (such as: country, province,
\ncity, region, county, etc.) within a certain statistical period of time (such
\nas: one year).<\/span><\/div>\n
\n
\n                              <\/span>10<\/b><\/span><\/div>\n
\n      Industry
\neconomic potential energy = \u03a3 technological <\/span><\/b><\/div>\n
\n   <\/span> <\/span>   1<\/span><\/b><\/div>\n
\n      advancement
\ngrade value X Total number of enterprise user of this kind technology \/ total
\nnumber of enterprise in this industry X 1000<\/span><\/b><\/div>\n
\n<\/div>\n
\n     3.3.7.
\nCalculation of economic potential energy of service product

\n

\n<\/span><\/b><\/span><\/div>\n
\n     Economic potential energy of a service product = the comprehensive index of
\nthe advancing nature of 10 key technologies utilized by average 1000
\nenterprises for a specific service product in a given economic space (such as:
\ncountry, province, city, region, county, etc.) within a certain statistical
\nperiod of time (such as: one year).<\/span><\/div>\n
\n
\n <\/span>                                                                       <\/span>     <\/span>10<\/b><\/span><\/div>\n
\n      Service
\nproduct economic potential energy = \u03a3 technology <\/span><\/b><\/div>\n
\n                                                            <\/span>   <\/span>         <\/span>   <\/span> <\/span>        1<\/span><\/b><\/div>\n
\n     advancement
\ngrade X Total number of service providers using this kind technology \/ total
\nnumber of service product providers X 1000
\n<\/span><\/b>
\n3.3.8. Calculation of economic potential
\nenergy of service industry<\/b><\/span><\/div>\n
\n
\n       <\/span>10<\/span><\/b><\/div>\n
\n      Single
\nservice industry economic potential energy = \u03a3 <\/span><\/b><\/div>\n
\n <\/span>       <\/span>1<\/span><\/b><\/div>\n
\n     Key
\nService Product Economic potential energy \/ 10<\/span><\/b><\/div>\n
\n
\n3.3.9. Calculation of potential energy
\nof regional economy<\/b><\/span><\/div>\n
\n<\/div>\n
\n    3.3.9.1.
\nRegional product economic potential energy (Regional social-economic potential
\nenergy)<\/span><\/b><\/span><\/div>\n
\n<\/div>\n
\n<\/div>\n
\n            <\/span>10<\/b><\/span><\/div>\n
\n     Regional
\nproduct economy potential energy = \u03a3 key <\/span><\/b><\/div>\n
\n                                                                        <\/span>     <\/span> <\/span>       1 <\/span><\/b><\/div>\n
\n     product
\neconomic potential energy
\n<\/span><\/b>
\n3.3.9.2. Regional industry economic
\npotential energy

\n

\n<\/b><\/span><\/div>\n
\n     <\/span>6<\/b><\/span><\/div>\n
\n     Regional industry economic potential energy = \u03a3<\/b> Key <\/span><\/div>\n
\n           <\/span>1<\/b><\/span><\/div>\n
\n     industry economic potential energy<\/p>\n

3.3.9.3. Regional economic potential
\nenergy
\n<\/b>
\nRegional economic potential energy =
\nregional product economy potential energy + regional industry economic
\npotential energy<\/b><\/p>\n

3.3.10. Calculation of macroeconomic
\npotential energy
\n<\/b>
\nMacroeconomic potential energy =
\nRegional product economy potential + Regional industry economy potential energy<\/b>

\n

\n<\/span><\/div>\n

\n      3.4. Economic potential
\nenergy and market capacity<\/span><\/b><\/div>\n
\n
\nThrough the research and calculation of economic potential energy, we can get
\nthe following two conclusions:<\/span><\/div>\n
\n<\/div>\n