A Study On The Regional Economic Gap Based On The Unequilibrium Distribution Of FDI In China

Since 1978,China has scored great achievement in economic growth,but the development is unbalanced.The speed of the economic growth in the developed east is higher than the developing middle and the developing west.The widening of regional economic gap has become one of the biggest challenges that influence the sustainable development.So the research of regional gap is important to theory and practice.The paper analyzes the forming reason and mechanism of the regional economic gap in China based on the FDI unbalanced distribution,at the same time, the paper brings forward the policy advice to reduce the regional economic gap in China.The method of the research in the paper is impellent,and the basal research course is the following.Firstly,the author uses the Theil coefficient and Gini coefficient to analyze the regional economic gap,and decomposes the structure in China.At the same time,the author tests theσconvergence,the absoluteβconvergence,the conditionalβconvergence and the club convergence.Secondly, the author analyzes the forming reason and mechanism of the regional economic gap in China.Thirdly,the author explains the forming reason and mechanism of the regional economic gap in China based on the FDI unbalanced distribution.Lastly,the paper brings forward the policy advice.The author discovers that the diversification of the regional gap according to the province cell in China behaved "U" form.The regional gap of between the east and the rest areas was enlarging.The regional gap of between the east and the rest areas was the primary contributor of the regional disparity according to the province cell in China from 1990's.From the industry to observe,the author discovers that the regional gap of the secondary industry was the primary contributor,but the rate of was descending.The third industry was becoming the important contributor.The industry structure adjusting and the agglomeration of the third industry and the secondary industry are the primary reason of the forming of the disparity of between the east and the rest areas.In the 1978 to 2005,the absolute convergence of economic growth didn't occur,the other way round,the club convergence of economic growth occurred in the east and in the middle.The speed of the economic growth in the east was higher about 1 centigrade than the middle and the developing west,and was higher about 2 centigrade than the west.The forming reasons of the regional economic gap are because of the capital gap and the TFP gap between the west and the rests.The FDI distribution affects the regional economic gap in the two ways.On the one hand,because of the east attracting more FDI,there is more capital in the east.On the other hand,the techno-overflow of FDI is higher in the east than the rests.So the TFP is higher in the east than the rest.Because the east has predominance in the policy,human capital,place,market and efficiency wage,FDI assembles in the east.The investment circumstances of FDI are bad in the middle and the west than the east in the place,policy,marketing, opening and the basic establishment.The reasons of the techno-overflow of FDI are lower in the middle and the west than the east is that the techno-overflow of FDI is lying on the investment history and proportion of FDI.When the investment time is longer and the investment proportion is higher,the techno-overflow of FDI is higher. Besides of the investment history and proportion,the bad studying capability of the westem corporations is the important reason.So the middle and the west must enhance the capability of attracting FDI by consummating the basic establishment and enhancing marketing reform on the one hand.On the other hand,the middle and the west must enhance the capability of absorbing FDI technology by changing the industry policy and enhancing market competition.Depending on the increasing of FDI,the middle and the west will obtain capital.Depending on heightening of the techno-overflow of FDI the middle and the west will heighten the TFP the middle and the west.In the end,the middle and the west will develop faster.In one word,there are the following innovations in the thesis:Firstly,the thesis discovers that the diversification of the regional gap according to the province cell in China behaved "U" form.The regional gap of between the east and the rest areas was the primary contributor of the regional disparity according to the province cell in China from 1990's.Secondly,the reasons of inducing regional gap are that the distribution of the FDI amount isn't equilibrium and the techno-overflow of the FDI isn't equilibrium also.Lastly,the middle and the west must enhance the capability of attracting FDI and the capability of absorbing FDI technology.