A Miraculous Ningguo City of China and Analysis of Influencing Factors of Competitive Advantage

Ningguo City is a remote and small county in Anhui Province, China. It has created “Ningguo Miracle” since 1990s. Its general economic capacity has been ranked #1 (the first) among all the counties or cities in Anhui Province since 2000. In order to analyze the influencing factors of competitive advantages of Ningguo City and explain “Ningguo Miracle”, this article have evaluated, analyzed and classified the general economic competitiveness of 61 counties (cities) in Anhui Province in 2004, by 14 indexes of evaluation index system. The result showed that compared with other counties (cities) in Anhui Province, Ningguo City has more advantages in competition. The competitive advantage of Ningguo City is due to the productivities, the effect of the second industry and industry, and the investment of fixed assets. Then the influencing factors of Ningguo’s competitiveness in terms of productivity were analyzed with authoritative data since 1990 and a log linear regression model was established by stepwise regression method. The results demonstrated that the key influencing factor of Ningguo City’s competitive advantage was the change of industry structure, especially the change of manufacture structure.