Spatial Knowledge Spillovers About The Economic Growth Of Developing Regions

Based on the spatial knowledge spillovers and innovation spread theory that the knowledge spillovers from outside areas can greatly contribute to the economic growth of the developing area, a new general model of regional economic growth based on knowledge spillovers was re-constructed. And the basic routs for economic chasing by the developing areas, the mechanism of the economic convergence and the mechanism of the "middle income trap" are researched theoretically. And so, many suggestions are made for the developing area how to realize the economic chasing and how to get out of the "middle income trap".Firstly, based on the build of knowledge growth model, a new general model of regional economic growth and a new knowledge growth equation with the outside knowledge spillovers are re-constructed. On the view of knowledge growth’s route, based on the endogenous growth model, adding the knowledge spillovers for the outside area, a knowledge growth model is constructed. And bases on the normalized two department model of the new economic growth theory, a new general model of regional economic growth based on knowledge spillovers was re-constructed. And based on the research of the regional long term balance economic growth analysis by the new model, a new regional long term balance economic growth equation is concluded.Secondly, based on regional long term balance economic growth equation, the convergence theory from the neoclassical economic growth theory is reresearched, and the relationship between knowledge spillovers, economic convergence and economic growth is revealed. Because of the knowledge spillovers from the developed area, a developing area gets the possibility of economic convergence. The key factor is the capability and speed of increasing of the knowledge absorbing by the developing area. At the same time, the different conclusions from the different scholars’ empirical analysis also could be theoretically explained.Thirdly, based on the theoretical analysis about the mode and route of the regional long term balance economic growth, the relations between the knowledge spillovers, the employment increasing, the natural popular increasing and the long term balance economic growth are revealed. Different from the conclusion of the traditional economic theory, that the increasing of popular increasing rate means the decreasing of balance growth, a new conclusion is concluded that a rational popular increasing rate is benefit to the long term economic growth. And it is theoretically explained how to realize the high speed growth for the developing area.Fourthly, on the view of knowledge spillovers, a brand-new theoretical framework of ‘middle income trap’ is provided, and the reason for the developing areas falling into the ‘middle income trap’ is revealed. The reason about the forming of ‘middle income trap’ is that, because of with the decreasing of the knowledge gap between the developing area, the developed area along with the developing area getting into the mid-income stage, for the lack of the self-knowledge production ability, the capability of the knowledge absorbing by the developing area is low, and the high- growth rate of knowledge spillovers couldn’t be sustainable. And the measures for china how to avoid the “middle income trap” are provided.Fifthly, the phenomena of “middle income trap” in specific developing countries in the world are analyzed, and the idea that “middle income trap” is the challenge to all developing countries is proved. With the method of main factor analysis, threshold regression, using the time series data of China from 1984 to 2013 and the panel data of 30 provinces(exclude Tibet) from 2003 to 2013, an empirical research on absorbing knowledge spillovers and innovation is conducted. It shows the cause of “middle income trap” and concludes that on different stage of development, the promotion from innovation is different.