Research on the Assessment of Regional Competence Structure and Its Impact on Economic Growth
|Keywords||Competence Structure Regional Economic Growth Comprehensive Assessment Factor Analysis Difference in Regional Development|
After China’s reform and opening up, Chinese economy has experienced a rapid growth. Based on the price in 1978, GDP in China has increased to RMB7476 billion in 2010 compared to only RMB364 billion in 1978, which has risen more than 20 times in 32 years, with an average growing speed at 9.9%. In other words, Chinese economy has become an important driver for global economic growth, leading the world economic development. However, due to the regional economic inequality strategy, there is an obvious trend in Chinese economy that while eastern region has developed fast, economic progress in western areas of China has been slow, indicating unharmonious development of regional economy. According to the experience of economic development, regional competence structure has been playing an increasing important role in promoting the economic growth. The differences in regional competence structure can induce gaps of the economic development between various regions, and affect the range and efficiency of economic cooperation. As a result, this article is of importance to systematically assess present state of regional competence structure, to improve understanding of effect of regional competence structure on economic growth, to deep the analysis on the relationship between regional competence structure and economic development, and to accurately determine the correlation degree between them.This study will review the related literature firstly in order to analysis the relation between competence structure and regional economic inequality and unsystematic development, as well as the impact of regional competence structure on economic growth; secondly, it will comprehensively assess the present states and differences in regional competence structure among eastern, middle and western areas in China, from five main aspects including capacity of optimizing the allocation of resource, opening-up, education and learning, technology innovation, and optimization policies and system respectively. Then the paper confirms the importance of regional cooperation to promote regional competence structure and narrow the gaps among regional economic development, when there is a huge difference in competence structure; finally, both comparative and empirical analysis are employed in this study in order to find out the reasons why regional competence structure among various regions are different, and provide possible solutions for improving competence structure and promoting coordinated development.It is suggested that: (1) there is a huge difference in region competence structure among various areas in China, showing a decrease echelon from eastern China to western regions. In other words, the competence structure in eastern China has been significantly higher than other areas such as western, middle and north-east China. (2) In terms of components of regional competence structure, all of them are higher in eastern China than in western and middle China including resources, transportation, education, information level, technology, marketization degree, opening-up and conversion of governmental functions, which is the fundamental reason for the huge difference among regional competence structure. (3) Empirical studies on panel data suggested a positive effect of competence structure on economic development although this impact is relatively small. Except north-east China, the competence structure has a decreasing impact on eastern, middle and western China respectively. (4) The gaps in regional economic development mainly results from differences in regional competence structure. Therefore, this study provides suggestions on optimization competence structure in order to promote the regional harmonious development.