Study on Influencing Factors of Regional Economy Based on Multilevel Model

Based on the relevant data of economic development of 31 provinces in China from 2016 to 2021, this paper selects the level of economic development as the response variable. The explanatory variables are selected from the aspects of location, human capital, industrial structure, foreign trade, system, science and technology and employment level. Aiming at the data with hierarchical structure, a multilevel model is proposed for analysis. It is concluded that human capital, industrial structure, foreign trade and system have a significant impact on the level of economic development. The impact of technology and employment level on the level of economic development is not significant. At the same time, this paper also makes a comparative analysis of the linear regression model, random intercept model and random intercept-slope growth model, which shows the advantages of random intercept-slope growth model.