A Study of the Correlation between China’s Informatization ... · Beijing University of Posts and...

A Study of the Correlation between China’s Informatization Level �and Its National "Well-Being"

Da Gu, Wen Ma and Bin Zhang

School of Economics and Managements

Beijing University of Posts and Telecommunications

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l Informatization construction in China has gone on for over thirty years. As with the development and wide application of information technology, informatization has been fully integrated into Chinese citizen’s work and life, continuously changing people’s working and living style. l So is the informatization level having an impact on national well being? And how big is the correlation? l This paper will address these problems based on the real data of the thirty one provinces, autonomous regions, and municipalities in China from 2006 to 2012.

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OUTLINE

1.  LITERATURE REVIEW

2.  MEASUREMENT MODEL

3.  THE INDEX CALCULATION

4.  CASE STUDY

5.  CONCLUSION

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OUTLINE




4.  CASE STUDY

5.  CONCLUSION

5

Literature Review——Informatization

Informatization is a notion without a worldwide acknowledged definition. Scholars from different countries have various explanations with regard to informatization.

◎Japanese scholar Tadao Umesao (1963) [1]: The combination of modernization in telecommunications, computerization, and reasonable behaviors. ◎Chinese economist Yifu Lin [2]: Using ICT (Information and Communications Technology) to revolutionize traditional economic/social structures based on the development of ICT and the diffusion of ICT into the society/economy. ◎Ping Zhao [3]: Informatization is a historical process in which people have a higher degree of application of modern information technology, a high sharing of information is achieved within the society, and people’s intelligence potential and social material resource potential have been fully explored, making the economy/society highly efficient and of good quality.

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Literature Review——Informatization

Incorporating all the viewpoints of the above mentioned scholars, this paper has come to a new definition of informatization:

Informatization stands for a process in which IT is developed and applied, and information resources integrated and shared, and as a result, individuals, organizations and society benefit from the information resource potential and material resource potential’s full exploration and reasonable functioning, so as to achieve an ideal state.

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Literature Review——National Well Being

◎National well being is a general term used to describe the status of an individual or a group, such as their social, economic, psychological, or medical status. High national well-being means an individual or a group has positive experience from some extent, while low national well-being is related to negative [4]. ◎The UNDP (United Nations Development Program) coined the notion of the Human Development Index (HDI) in its Human Development Report of 1990 [5]. HDI can be calculated in a certain way based on three fundamental variables: life expectancy, education level, and life quality. ◎ The HDI brought up by the UN is having a big influence on the developments in different countries. That makes those countries, especially the developing countries, pay more attention to the contribution of economic development on national well-being while planning their economy.

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Literature Review——Correlation

◎Norwood converted Maslow‘s hierarchy of needs theory into a hierarchy of information theory, elaborated what kind of information people needed to achieve various levels of Maslow’s hierarchy [6]. ◎Xu Min thinks we should make full use of modern information technology, resources, and various exchanging and sharing platform, to make people’s livelihood digital, integrated, networked and intelligent [7]. ◎Xiuling Li believes that informatization industry should treat improving people’s livelihood as a responsibility, fully affirming the leading role of informatization on livelihood development [8].

With the accelerated development of information technology and people's concern for their well-being, the question of whether improved IT capabilities will enhance well-being caused a lot of attention among research scholars.

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OUTLINE




4.  CASE STUDY

5.  CONCLUSION

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Measurement Model

Indicator System—Informatization Level

informatization level

Technology 0.09 Economic 0.09 Society 0.41Government 0.26 Education 0.15

Information

coverage 0.25

Network

infrastructure 0.75

Consuming

ability 0.5

Level of

economic

development 0.5

Science and

education investment

and innovation

0.25

The government ICT

investment 0.75

The human resources 0.375

Cultural quality

0.625

The Internet and

mobile applica

tion level 0.63

TV and fixed

phone applica

tion level 0.11

Local content on the

Internet 0.26

TV Coverage Rate of Population

Optical Cable

Length per Ten Thousand People per Ten Thousand

Square Kilometer

s 0.63

Broad

Band Subscribe

rs Port of

Internet per

person

0.37

Per Capit

a Disposabl

e Income

GDP

per Capita

Education

Funds per Capita 0.57

Number of

Patents

Applications

Granted per Ten

Thousand Peop

le 0.14

Information

Infrastructure

Investment per Ten

Thousand Peop

le per Ten

Thousand Squa

re Kilomete

rs

Per Capit

a Investment of Science and

Technology

0.29

Percentage of Information

Industry

Practitioners

Accounted for the

Total Employment in

Urban

Units

The Proportion of

College

Student

Population 0.2

Ratio of

Illiterate

Populatio

n Aged

15 and

Over 0.8

Number of

Computer per 100

Households

0.29

Internet

User per 100 peop

le 0.29

Popularization Rate

of Mobi

le Telephon

e 0.28

Internet

Broadban

d Penetratio

n 0.14

Popularization Rate of

Fixed

Telephon

e 0.63

Number of

Color TV per 100

Households

0.37

Number of

Websites per Ten

Thousand Peop

le 0.17

Number of

Webpages per Capit

a 0.33

Number of

Domain

Names per Ten

Thousand Peop

le 0.17

Number of

IPv4 Addresses per

Capita

0.33

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Measurement Model

Indicator System—National Well-being

Health and

Longevity•  Life Expectancy

at Birth

Educational Attainment

•  The Average Years of Education

Living Standard

•  Disposable Income per Capita

National Well-being Level

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OUTLINE




4.  CASE STUDY

5.  CONCLUSION

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THE INDEX CALCULATION

Raw Data Resource

Raw Data

China Statistical Yearbook

Communications Statistics Annual

ReportThe Statistics

Report for China Internet

Developing Situation

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Data Standardization

In order to ensure the comparability and

unity of the indicators in the measurement

system

Use the mean standardization method

(only eliminates the impact of dimension and

magnitude, while retaining the degree of

variation in the raw data)

The equation is: X’ij=Xij /Xij

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Data calculation

223

1K K

KILI I W

=

=∑

●The level of informatization level index (ILI) is calculated as follows:

● “Average Years of Education" in the national well-being index is calculated by the number of people at all levels of education from the results of the Census: Average Years of Education =(6* people having primary school education +9* people having junior middle school education+12* people having high school education +16* people having university education)/total population above 6 years old ● The ultimate national well-being index is the geometric mean of the standardized value calculated from the three major aspects of "health and longevity", "educational attainment" and "living standard”.

nn

i

itt II ⨿

1

ˆ=

=

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Results of the Informatization Index

Regi ons 2006 2007 2008 2009 2010 2011 2012

Anhui 0.38 0.43 0.48 0.55 0.64 0.72 0.82

Beijing 2.51 3.28 3.89 4.37 4.52 5.01 5.88

Fujian 0.64 0.76 0.93 1.01 1.13 1.23 1.42

Gansu 0.33 0.38 0.41 0.47 0.53 0.60 0.66

Guangdong 0.75 0.89 1.02 1.10 1.15 1.26 1.46

Guangxi 0.41 0.46 0.52 0.58 0.64 0.72 0.79

Guizhou 0.31 0.37 0.44 0.47 0.54 0.59 0.64

Hainan 0.63 0.68 0.79 0.89 0.96 1.20 1.35

Hebei 0.45 0.50 0.58 0.63 0.70 0.79 0.87

Henan 0.39 0.42 0.47 0.54 0.60 0.69 0.76

Heilongjiang 0.44 0.50 0.56 0.61 0.65 0.72 0.79

Hubei 0.46 0.50 0.57 0.64 0.72 0.81 0.89

Hunan 0.40 0.46 0.53 0.58 0.64 0.70 0.79

Jilin 0.49 0.55 0.61 0.71 0.77 0.84 0.93

Jiangsu 0.63 0.72 0.83 0.96 1.13 1.26 1.47

Jiangxi 0.41 0.48 0.50 0.56 0.62 0.69 0.78

Liaoning 0.56 0.64 0.77 0.86 0.96 1.04 1.16

Neimenggu 0.40 0.48 0.55 0.63 0.72 0.82 0.89

Ningxia 0.45 0.51 0.59 0.71 0.79 0.86 0.94

Qinghai 0.40 0.47 0.51 0.56 0.64 0.72 0.82

Shandong 0.48 0.54 0.64 0.70 0.78 0.88 0.97

Shanxi 0.46 0.53 0.63 0.70 0.73 0.81 0.89

Sha'anxi 0.44 0.52 0.60 0.70 0.81 0.90 0.99

Shanghai 4.72 4.74 4.87 5.36 4.68 4.13 5.39

Sichuan 0.38 0.44 0.49 0.55 0.63 0.69 0.77

Tianjin 1.54 1.84 2.42 2.37 2.36 2.94 3.19

Xizang 0.33 0.43 0.50 0.52 0.58 0.61 0.70

Xinjiang 0.39 0.46 0.53 0.55 0.63 0.72 0.82

Yunnan 0.36 0.40 0.44 0.49 0.54 0.61 0.67

Zhejiang 0.80 0.96 1.12 1.26 1.35 1.48 1.71

Chongqing 0.55 0.60 0.68 0.75 0.87 0.91 1.05National 0.71 0.81 0.92 1.01 1.07 1.16 1.33

The informatization indexes of Beijing, Shanghai, and Tianjin, the three municipalities, are much higher than many other provinces, suggesting that the development of IT applications in these regions is wide and fast.

And informatization indexes of Zhejiang, Jiangsu, Fujian, Guangdong, Hainan, as eastern coastal provinces, are also relatively high, indicating penetration of informatization in these economically more developed regions is also very good.

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Results of the Well-being Index

Regi ons 2006 2007 2008 2009 2010 2011 2012

Anhui 0.74 0.79 0.84 0.88 0.91 1.00 1.07Beijing 1.29 1.34 1.40 1.44 1.49 1.58 1.65Fujian 0.91 0.95 1.00 1.06 1.10 1.19 1.23Gansu 0.65 0.69 0.73 0.76 0.80 0.87 0.93Guangdong 1.01 1.06 1.11 1.15 1.19 1.28 1.34Guangxi 0.75 0.81 0.86 0.89 0.91 0.99 1.04Guizhou 0.63 0.68 0.72 0.74 0.78 0.86 0.91Hainan 0.80 0.85 0.90 0.93 0.96 1.05 1.12Hebei 0.81 0.85 0.90 0.93 0.96 1.03 1.08Henan 0.76 0.81 0.87 0.90 0.92 1.01 1.05Heilongjiang 0.83 0.88 0.92 0.95 0.99 1.05 1.10Hubei 0.80 0.86 0.90 0.93 0.98 1.07 1.12Hunan 0.80 0.85 0.90 0.93 0.96 1.03 1.08Jilin 0.85 0.90 0.95 0.98 1.01 1.08 1.13Jiangsu 0.95 1.01 1.06 1.11 1.17 1.26 1.32Jiangxi 0.76 0.83 0.88 0.92 0.93 1.02 1.08Liaoning 0.90 0.95 1.01 1.05 1.09 1.17 1.25Neimenggu 0.82 0.88 0.94 0.98 1.02 1.11 1.17Ningxia 0.75 0.80 0.86 0.90 0.92 0.99 1.04Qinghai 0.69 0.73 0.77 0.80 0.83 0.90 0.94Shandong 0.88 0.93 0.98 1.01 1.05 1.13 1.19Shanxi 0.81 0.86 0.90 0.93 0.96 1.04 1.10Sha'anxi 0.75 0.80 0.86 0.89 0.94 1.02 1.08Shanghai 1.30 1.37 1.43 1.47 1.50 1.58 1.65Sichuan 0.72 0.78 0.83 0.86 0.90 0.98 1.04Tianjin 1.09 1.14 1.21 1.27 1.31 1.40 1.46Xizang 0.53 0.58 0.61 0.63 0.67 0.73 0.74Xinjiang 0.74 0.79 0.82 0.85 0.88 0.97 1.02Yunnan 0.66 0.70 0.75 0.78 0.82 0.90 0.96Zhejiang 1.05 1.10 1.14 1.18 1.23 1.32 1.39Chongqing 0.81 0.86 0.91 0.95 0.99 1.09 1.14National 0.83 0.88 0.93 0.97 1.01 1.09 1.14

The level of well-being index and informatization index show similar regional differences. The national well-being index of Beijing, Shanghai, Tianjin, the three municipalities, is the highest, followed by the eastern coastal provinces, and then Midwest region.

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In order to have a general judgment on the relevance of the two indexes, we calculated the informatization index and well-being index averages of every year of the 31 provinces and autonomous

The National Informatization Index shows a large growth between 2006 and 2012

While the national well-being index is growing concurrently, two broken lines are in a positive correlation trend

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OUTLINE




4.  CASE STUDY

5.  CONCLUSION

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CASE STUDY

Regression Analysis

We assume that there is a linear relationship between the informatization index and the national well-being index. The established equation is:

national well-being level =a1+a2*informatization level

Regi ons R R- Squar e F P a2 t a1Anhui 0.992 0.984 309.702 0 0.715 17.598 0.479Beijing 0.982 0.964 135.31 0 0.113 11.632 0.979Fujian 0.987 0.975 194.024 0 0.437 13.929 0.618Gansu 0.996 0.991 563.683 0 0.819 23.742 0.38Guangdong 0.988 0.975 198.496 0 0.495 14.089 0.624Guangxi 0.992 0.983 297.266 0 0.719 17.241 0.47Guizhou 0.985 0.971 167.639 0 0.82 12.948 0.366Hainan 0.995 0.99 505.182 0 0.416 22.476 0.558Hebei 0.998 0.996 1386.519 0 0.628 37.236 0.531Henan 0.986 0.972 175.397 0 0.733 13.244 0.498Heilongjiang 0.999 0.997 1720.057 0 0.772 41.474 0.489Hubei 0.993 0.986 350.419 0 0.708 18.719 0.487Hunan 0.996 0.993 681.53 0 0.716 26.106 0.516Jilin 0.991 0.982 272.784 0 0.608 16.516 0.56Jiangsu 0.995 0.99 515.089 0 0.438 22.696 0.688Jiangxi 0.986 0.971 170.066 0 0.833 13.041 0.436Liaoning 0.991 0.983 284.849 0 0.561 16.877 0.58Neimenggu 0.995 0.991 538.954 0 0.685 23.215 0.549Ningxia 0.987 0.975 196.015 0 0.547 14.001 0.515Qinghai 0.994 0.989 444.83 0 0.603 21.091 0.453Shandong 0.997 0.993 714.825 0 0.613 26.736 0.587Shanxi 0.984 0.969 155.01 0 0.656 12.45 0.498Sha'anxi 0.993 0.986 351.416 0 0.575 18.746 0.498Shanghai 0.146 0.021 0.108 0.756 0.04 0.329 1.277Sichuan 0.993 0.986 354.785 0 0.789 18.836 0.428Tianjin 0.967 0.935 72.222 0 0.226 8.498 0.731Xizang 0.974 0.949 92.319 0 0.618 9.608 0.317Xinjiang 0.994 0.989 439.622 0 0.66 20.967 0.481Yunnan 0.997 0.995 955.157 0 0.947 30.906 0.321Zhejiang 0.986 0.973 179.881 0 0.385 13.412 0.724Chongqing 0.983 0.965 139.417 0 0.651 11.807 0.461

Except for Shanghai, the R values of all other provinces are high. They reflect a significantly high linear relationship between the dependent variable and the independent variable.

And the significance level P value of other provinces outside Shanghai is close to zero, indicating that our assumed linear model passed the set test, that is, the linear relationship between dependent variables and independent variables is significant.

The reasons for Shanghai being the exception will be explored in the correlation study.

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CASE STUDY

Correlation Analysis

The R values in last table reflect the correlation between the informatization index and well-being index in various provinces:

except for Shanghai, the other 30 municipalities, provinces and autonomous regions are showing a trend of a close-to-one positive correlation between the informatization index and the well-being index, meaning that elevated level of informatization improves the level of national well-being correspondingly.

The reason could be that there has been a downward trend in Shanghai's information technology index in 2010 and 2011, and in 2012 the index was restored to previous levels in 2009. But its national well-being index has been rising all the time, so the two indices are not obviously correlated.

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CASE STUDY

Clustering Analysis◎From the above correlation analysis and regression analysis, we can only have a vague impression for comparison between the provinces, roughly determining that enhancing role of informatization on the well-being in the eastern region is not as obvious as in the Midwest. ◎To verify this, we will conduct a clustering analysis on regression coefficients a2 and constants a1 of different provinces obtained through regression analysis shown in the last table. We divide the provinces and autonomous regions into four classes:

Regions class regions class regions class regions class

Anhui 1 Hebei 1 Liaoning 1 Sichuan 4

Beijing 2 Henan 1 Neimenggu 1 Tianjin 2

Fujian 3 Heilongjiang 1 Ningxia 1 Xizang 4

Gansu 4 Hubei 1 Qinghai 1 Xinjiang 1

Guangdong 3 Hunan 1 Shandong 1 Yunnan 4

Guangxi 1 Jilin 1 Shanxi 1 Zhejiang 3

Guizhou 4 Jiangsu 3 Sha’anxi 1 Chongqing 1

Hainan 3 Jiangxi 4 Shanghai 2

class a2 a1 class 1 0.656 0.509class 2 0.126 0.996class 3 0.434 0.642class 4 0.804 0.375

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CASE STUDY

●The first class contains most of the provinces and autonomies, the regression coefficients and constants are high, indicating the development of informatization in these areas can better promote the national well-being, while the fundamental national well-being of those areas is also better.

Clustering Analysis class a2 a1 class 1 0.656 0.509class 2 0.126 0.996class 3 0.434 0.642class 4 0.804 0.375

●The second category is Beijing, Shanghai and Tianjin, the three most economically developed municipalities, their regression coefficient is very low, but the constant is very high, indicating a high level of well-being in these areas, but the enhancing role of informatization on the well-being was small. ●The third class area’s regression coefficient is low, constants are high, indicating a good basis for national well-being in these eastern coastal provinces, but also that informatization does not significantly enhance the level of national well-being. ●The fourth class areas are remote underdeveloped provinces, their constant is low, indicating a low level of well-being of the people in these areas, but the highest regression coefficients found in these areas means that vigorously promoting the development of informatization can best enhance the level of national well-being.

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OUTLINE




4.  CASE STUDY

5.  CONCLUSION

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CONCLUSION

n  We found that there is a positive correlated linear relationship between the level of informatization and the level of national well-being, if the level of informatization improves, the well-being levels will be increased accordingly.

n  However, the degree of correlation is not the same in different regions. In Beijing, Shanghai, Tianjin, and the eastern coastal provinces, a higher degree of informatization is seen, while improving the role of the level of informatization on the level of well-being is not as strong as in the Midwest, Northeast China and other underdeveloped areas.

n  Based on the above statement, the following advice can be offered : -  1.Focusing on the development of informatization in the Midwest and

Northeast regions will bring a happier life for people from these economically underdeveloped areas, and also be helpful to enhancing the overall level of the national well-being.

-  2.Distribution of information technology resources for development should take into account the different degrees of informatization level’s influence on the well-being of citizens in different regions, thus should tilt the allocation of resources to the Midwest, Northeast China and other underdeveloped areas.

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Reference

n  [1] Tadao Umesao, Study of information industry, 1963.

n  [2] Yifu Lin, informatization with Economic growth and social transformation of China, 2003 June.

n  [3] Ping Zhao, Agricultural informatization while entering twenty-first Century: Discussion of the theory of information resources development, Economic Science Press, 2000 June.

n  [4] Well-Being, Wikipedia.

n  [5] The United Nations Development Programme, Human Development Report 2010, 2011.

n  [6] Norwood, G. The Truth Vectors (Part I) , http://www.deepermind.com/20maslow.htm.

n  [7] Min Xu, Thinking about Promoting People’s Livelihood Development Relying on Information Construction, Information Security and Technology, 2012/6.

n  [8] Xiuling Li, The lofty goal pursuit of informatization: People's livelihood needs, IT Time Weekly, 2011 April, Issue 8.

Thanks Prof. Richard Taylor for language support!

Prof. Bin Zhang’s Group School of Economics and Managements

Beijing University of Posts and Telecommunications

A Study of the Correlation between China’s Informatization ... · Beijing University of Posts and...

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