Impact of Tobacco Economy on Local Economy Based on Correlation Analysis

Abstract

Objectives: Through the method of correlation analysis, this paper studies the impact of tobacco economy on the local economy of Yunnan Province, China. Methods: This paper studies the impact of tobacco industry on Yunnan economy by using the relevant theories of industrial economics, econometrics and regulatory economicscombined with the actual situation of tobacco industry in Yunnan Province. Based on the analysis of the overall development of Yunnan tobacco industry, this paper empirically analyzes the relationship between tobacco industry and Yunnan economic growth. Results: When the output value of tobacco industry increases by 1%, it will drive the GDP of Yunnan to increase by 0.373%. By comparing the economic benefits of tobacco with the social cost of tobacco, it is found that the social cost caused by tobacco increases year by year with the economic development. The economic benefit is slightly greater than the social cost, and the difference between the two is also increasing year by year. Conclusion: The healthy development of tobacco industry can promote the growth of local economy in Yunnan. In the context of tobacco control, we should fully consider the advantages and disadvantages of developing the tobacco industry.