Study Of China Regional Policies' Impact Upon Regional Disparities

Since 1978, China central government began to carry outnon-equilibrium regional policy to break low level regional equilibrium,and the eastern China caught rapidly development. In 1990, centralgovernment advanced new regional policy of making Shanghai as agrowth pole to promote whole eastern China development. After tenyears, China regional disparities were widened in aggregate demand,structure and efficiency. It was very time to harmonize equity andefficiency, and regional policy also adjusted to adapt these changes.China central government put forward a series of regionaldevelopment strategy of developing western China in 1999, revivingnorth east China outdated industry areas in 2003, and eastern,central and western China interactive promoting and developmenttogether in 2005.Obviously, target region of China regional policies' impact uponregional disparities has changed from part to integer and its' strategyalso changed from non-equilibrium regional development tonon-equilibrium in phase regional development. Researchers stillhave not roundly and dynamically analyzed regional policies' impactupon regional disparities since 1978, this paper would make forChina government understanding regional policies' impact uponregional disparities, forecasting its trend, setting down proper policiesbetimes, and available employing regional policies to realizeharmony development. At the same time, this paper not only designhistorical and logic cohesion for relevant studies and also designframe of reference for general analysis of regional policies' impactupon regional disparities.By using empirical analysis integrated with normative analysis,and historical analysis integrated with logic analysis, this paperanalyzes regional policies' impact upon regional disparities fromthree aspects of aggregate demand, structure and efficiency. Thispaper's content and main conclusions as follows:1 From the view of macrocosm analyzing regional policies'impact upon regional disparities, this paper concludes China regionalpolicies could effectively adjust regional disparities and speedregional economic growth, but eastern part diffusion effect to centraland western part, especially western part, is still not strong enoughand regional policies should cast more effect on these issues.2 From the view of demand structure analyzing regional policies'impact upon regional disparities, this paper concludes marginalconsumption of eastern part is lower than central and western part,central part spontaneous consumption is higher than western partbut its marginal consumption lower than western part. Regionalinvestment disparity mainly is due to the gap between domestic loanand self-financing, and net export effect is most weak demand inthree regions. All these state different regional demand structure andneed proper regional policies to adapt.3 From the view of foreign economy analyzing regional policies'impact upon regional disparities, this paper concludes regional FDIgap is widening with FDI growth, and after 2000 the growth of centralpart FDI is very strong but the proportion of eastern part FDI isdecreasing while western part FDI proportion keeps little movement.Although proportion of foreign enterprises' contribution to localeconomy is decreasing, its promotion effect on local economy isincreasing from eastern part to western part. At the same time, threeregions set down different foreign trade models, eastern part modelis import promoting export and then increasing trade amount, centralpart model is export promoting trade amount, and western partmodel is only mainly depending on export but its effect on tradeamount was not half. All these ask regional policies should accordwith regional economy features.4 From the view of industry structure analyzing regional policies'impact upon regional disparities, this paper concludes all threeregions are in industrialization process and the second industrydistinctly affect all regions economic growth but eastern part industrystructure level is superior to central and western part. Althoughworkers' amount in the first industry of eastern part has decreasedlargely, the first industry aggregate output and efficiency of centraland western part are still lower than eastern part's. The secondindustry development of eastern and central part is superior towestern part. As for eastern and central part, central part's aggregateoutput and efficiency are still lower, but industry transfer wouldnarrow this gap between regions. While regional disparities in thethird industry are widened, intra-region industry structure also existbig difference. Further more, the third industry level of regions islower and it requests regional policies to accelerate industrydevelopment by its traits but not universal regional industry policies.5 From the view of potential capability analyzing regionalpolicies' impact upon regional disparities, this paper concludes allregions' state owned enterprise efficiency is superior to foreignenterprises. Generally speaking, all regions' state owned enterpriseamount was decreased largely, but its aggregate output and unitoutput in all regions are increasing. All regions' foreign enterpriseamount and output are increasing, but its unit output of central andwestern part is relative higher than eastern part. Student amount andiatric amount are two key parameters to influence regional economicgrowth, but they two still exists regional disparities. Meanwhile,teacher amount negative relative with regional output explains Chinaregional growth is still not acerbated by human capital and thesephenomenon suggest regional policy cultivate human capital as soonas possible to enforce regional potential capability.According to above analysis, this paper forecast China regionaldisparities would still increase from macrocosm view, but the relativedisparities could be reduced with regional policies' effort. Finally, thispaper put forward some advices from the aspects of regionaldevelopment strategy, regional policy target and regional policymanagement.