Spatial Convergence Clubs And Thire Factors In China

Spatial characteristics of the convergence clubs of regional economic growth has been a major research focus for scholars. The exploration of convergence clubs is becoming a new reserch area in the field of club convergence. Ever since the reform and opening up policy, China has experienced a period of rapid economic growth, concentrating especially in the coastal areas and areas along the rivers, while China's vast central and western regions are also tend to be concentrated by themselves in a segragating manner. This convergence phenomenon provides us a good factual basis and a large number of cases for study. Since the late 90s of the 20th century, some Chinese scholars began to study the convergence clubs phenomenon. However, literatures about the spatial convergence clubs in China, as well as thire influencing factors are scanty. As to the similar studies abroad, the study on the spatial convergence clubs as a whole is also in a very early stage.This paper is based on the neoclassical economic growth theory and the local spillover theory of the new economic geography. By considering the initial conditions and structural features of, the spatial convergence clubs phenomenon, as well as incorporating previous research results, the author believe that the set of regional economic growths with the same initial conditions and structural features of such a convergence should conserve the same stability state and should be of first order adjacency. These regions constitute a common converging space for a economic"club". Analyzing the reasons or factors that lead to the formation of China's space converging clubs is the main task of this research.In summary, this paper mainly includes five parts as the following.(1) The identification and inspection of space converging clubs. The author used exploratory spatial data analysis methods to divide the Chinese space area into HH group, HL group, LH group and the LL group, and then these four groups were tested based on the spatial lag model, spatial cross-sectional model, and the spatial error model. The results showed that the regression coefficient of HH group and the LL group is significantly negative, indicating that there exist obvious space converging clubs in the HH group and LL group. HL group and the LH groups do not have space converging clubs. The HH group has 9 space converging clubs of different sizes. Taking into account of the number of members in each club and their representatives, the author finally selected the Pearl River Delta, the Yangtze River Delta, Shandong, Beijing-Tianjin-Tong, and finally Liaoning space converging clubs to study. Although the LL group also has space converging clubs, we do not pay more attentions to this topic because of the limitation of data and times.(2) The selection of the impact factors of China's space converging clubs: based on the initial conditions of formation, structural characteristics, and the specific context of China, the author initially divided the impact factor of China's space converging clubs into local impact factors and global impact factors with local effects. At the same time, after repeatedly consulting with related experts and his own research advisor, the author constructed the framework for the impact factors of the converging clubs in China. Within this framework, there are 7 local factors including geographical environment, natural resources, communication and transportation system, population and human resources, investment level, market demand, location and industrial structure. There are 5 Global factors with local effects including regional development strategy and policies, openness level, marketization level, educational development, and technological progress. Measurements of the local impact factors and global factors are conducted with a total of 31 variables. The impact factors of space converging clubs were selected with the utilization of fixed effects spatial lag model and the fixed effects spatial error model. It was found that the number of significant impact factors vary among different space converging clubs. The Pearl River Delta space converging club has 6 significant impact factors, of which the local impact factors are population and human resources, investment level and industrial structure, and the global impact factors with local effects are regional development strategy and policies, openness level and marketization level. The Yangtze River Delta space converging club has 6 significant impact factors, of which the local impact factors are investment level, location and industrial structure, and the global impact factors with local effects are regional development strategy and policies, openness level and marketization level. Shandong space converging club has 5 significant impact factors, of which the local impact factors are population and human resources and investment level, and the global impact factors with local effects are regional development strategy and policies, openness level and marketization level. Beijing-tianjin-tang space converging club has 5 significant impact factors, of which the local impact factors are investment level, and market demand, and the global impact factors with local effects are regional development strategy and policies, openness level and marketization level. Liaoning space converging club has 5 significant impact factors, of which the local impact factors are population and human resources, investment level and industrial structure, and the global impact factors with local effects are regional development strategy and policies, openness level and marketization level. Whether the selected impact factors belong indeed to each space converging club and the level of influence by these impact factors require further rigorous testing.(3) Test of impact factors of China's converging clubs. Based on theβconvergence regression model and the spatial panel model of fixed effect, the selected impact factors of space converging clubs were double-tested. The test results showed that 4 impact factors of the Pearl River Delta space converging clubs passed the significance test. Two of the four impact factors, industrial structure and the level of marketization have the most important effect, accouting for 82.00% of the total influence. Regional development strategy and policies and marketization level have more important effect, yet marketization level only has general effect. The Yangtze River Delta Space converging clubs also have five impact factors that passed the significance test. Of the five factors, industrial structure and regional development strategy were most important, accouting for 61.80% of the total influence. Marketization level was more important, and investment level and openness level are general impact factors. Shandong space converging clubs have four that passed the significance test. Of the four factors, the level of investment and regional development strategies were most important, accounting for 96.40% of the total influence. Openness level and marketization level were more important. BeiJing-Tianjin-Tang space converging clubs have four impact factors that passed the significant test. Of the four factors, the level of investment and the level of marketization were most important, accounting for 97.10% of the total influence. Regional development strategy and policies and marketization level were more important. Liaoning space converging clubs have four factors that passed the significant test. Of the four factors, industrial structure and regional development strategies were most important, accounting for 94.70% of the total influence. Inveatment level and marketization level were more important. Looking at the HH group it is easy to see that the main factors affecting the Chinese space converging club were different. From an overall perspective, the most important impact factors are regional development policies, marketizatio level, industrial structure and the level of investment.From this research experience of identification, testing, selecting, and double-test of the impact factors, the author believes that it would be crucial to promote market-oriented reforms, to increase the investment level of the economically backward regions(especially in China's vast western region), to break the administrative limitations, to adjust the industrial structure, and to improve the level of education. This way, with the stimulation by the government and the marketization, the gap between the economically backward and advanced regions can be effective reduced, and the economy can continue develop in a rapid and coordinated manner.