Dissertation > Economic > The world economic profiles,economic history,economic geography > China's economy > Economic construction and development > National income, national wealth

An Empirical Study of Regional Economic Disparities in China

Author MaZuoJing
Tutor WeiPing
School Huazhong University of Science and Technology
Course Western Economics
Keywords Regional economic disparities Capital deepening Technological progress Endogenous institution International Trade
CLC F124.7
Type PhD thesis
Year 2011
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Since reform and opening up from1978, China has made remarkable achievements as sustained economic growth. From1979-2008, the real GDP per capita increased by10times, and this continued growth is called the "China miracle." The implementation of China to the eastern slope of the non-balanced development strategy, in the eastern part of the economy are growing rapidly, and thus promote the overall economic efficiency, but also to central and western China, the region between paying the widening economic gap between the price. In this paper, as an analytical framework for growth regression, respectively, using provincial and city level and above the sample inspection of the sample widening gap between China’s regional economic factors, trying to clarify the capital deepening, technological progress, international trade and system changes and other factors which play role, and put forward corresponding policy recommendations.This dissertation is divided into three parts:theoretical analysis, empirical research and conclusions. The author presents theoretical analysis in charter II, III and IV. The second chapter reviews the theoretical basis of regional economic disparities:the balanced development theory and non-equilibrium development theory. The former includes the classical area of new theories, Rosenstein-Rodin’s "big push" theory and the Nexus’s get rid of "the vicious circle of poverty" theory of balanced growth. This chapter combing theory of economic growth, balanced and unbalanced growth theory, the later study the specific impact factors of regional economic disparities provide a theoretical premise.The third chapter in historical perspective examines China’s economic development since the late1970s to Regional Economic Strategy changes the dynamic of the gap. The uneven development of reform and opening up began in shaping the future strategy of decades of economic geography:economic performance is much higher than the eastern coastal areas in central and western inland regions.The implementation of national strategy including western development, the revitalization of Northeast China and rise of central China, initially contain the trend of the widening economic gap between regional. Results from the implementation perspective, the central government coordination of regional development efforts have achieved initial success, the eastern region accounted share of total output for the first time in2009years ago, fell60%;central, west of the country’s total share has increased. Finally, this chapter discusses the economic disparities between regions may lead to too large a range of consequences, to address this problem highlights the necessity and urgency.Mechanism analyses are presented in Chapter IV. First, were investigated on capital accumulation, technological progress, institutional change and international trade on economic growth and role in the mechanism of possible avenues of regional economic disparities; and then characterize the fixed asset investment, science and technology, international trade, not the geographical distribution of elements such as balance of features and institutional change is not known synchronization. This uneven distribution of elements and institutional change not synchronous, and will inevitably lead to regional economic performance there are significant differences.This empirical research consists of three parts, followed by capital deepening, technological progress, institutional change and international trade and regional economic gap between China’s quantitative studies. Use medium-sized industrial enterprises Chapter provincial panel data to explore the different types of capital deepening and technological inputs on the productivity of industrial labor provinces. From a national sample of view, labor productivity can be explained by capital deepening regional disparity of35%-43%; technology digestion, introduction of technology to buy and their interaction terms with the level of capital deepening on labor productivity growth have no significant positive effect; independent research and development not only itself affect the labor productivity and capital deepening through the level of interaction contributed significantly to labor productivity growth.Capital deepening, technology investment and heterogeneity of the relationship between labor productivity differences exists significant regional characteristics. Capital deepening in the eastern part of the process of labor productivity growth in the role of closer with the national sample, in order to slow the decline in the marginal efficiency of capital, the eastern region to consider the development of relevant policies to encourage enterprises to introduce foreign advanced technology and implementation of new product development, to take the lead in China upgrading the industrial structure. Eastern part of central and western regions should take advantage of the opportunities the transfer of industries, and actively introduce the eastern investment, accelerated capital deepening, while independent research and development enterprises to increase efforts to save their scarce capital, while improving product competitiveness in domestic and foreign markets.Chapter VI and VII are based on the urban cross-section data, committed to addressing institutional change or the endogeneity of international trade. Chapter IV method using the system and examine the endogenous relationship between economic performance between cities. In order to increase revenue and gain promotion to increase the probability of performance, local officials have incentives to provide informal non-state investment property protection; reform and opening up the proportion of industrial output value of the collective impact of the local leaders of the attitude of non-state protection of property rights can be regarded as the current system tool variables. IV results show that different degrees of property protection can be strong for most of Chinese cities to explain the differences in economic performance, once the control system factors, the high-level city did not show better economic performance.Chapter VII describes the first use of head-way freight import and export of China is facing resistance in different regions to study the performance of students of international trade and economic relations. OLS and IV results show that international trade does not overestimate the contribution of China’s economic growth, once the control of international trade, the coastal areas did not show even better economic performance; if international trade increased by1%per capita GDP is expected growth in the region0.19-0.22%; the need for national reforms to improve inland transport enterprises to participate in the international markets. Instrumental variables related by a strict and outer test, sub-sample sensitivity analysis and control variables means to protect the stability of the conclusions.

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