Analysis of the major factors affecting Macao´s economy

As one of the few mini-economic systems in the world, Macao´s economic development exhibits not only the common characteristics of the mini-economic system (e.g., sensibility to the external environment), but also its own unique characteristics (e.g., relying on the support of the mainland). Since the return of Macao to China in 1999, Macao´s economy has been developing rapidly. Therefore, the influential factors that affect Macao´s economy have also been changed. This paper applies the beta regression model to establish Macao´s economic growth model. Based on the quarterly data of 2001~2011, this paper estimates the probability distribution of Macao´s GDP growth rates. And according to the model, this paper analyzes the major factors affecting Macao´s economic growth.