Abstract: This paper views environment as an element of production function and establishes a quantile regression model based on the 2006—2013 panel data. Under the background of low-carbon economy, we study the regional difference of the impact of factor endowments on China's economic development. The results show that labor force, physical capital and environmental investment are the main factors of economic growth, however, human capital doesn't as we expected significantly promote economic growth because it has not met the economic market needs. In the areas where economy is relatively backward, increasing physical capital investments and promoting industrial upgrading are the most effective ways to drive its economic growth. In the areas where economy is in the middle level, labor force and physical capital investment could remarkably boost the economy. In the areas where economy is relatively developed, the function of physical capital investment is weakened. The market demands of innovative technology and talents are the new driving power of sustained economic growth.

Key words: factor endowment, economic development, quantile regression, panel data