A Study On The Spillover-effects Of Regional Economic Growth In China

With the development of market economy, the process of regional economic integration in China is speeding up. As a result, a region economic growth not only depends on inner factors, but also is drove by other regions' economic growth. This paper systematically summarizes the theory of regional imbalance development in Development Economics and the theory of agglomeration and dispersion in New Economic Geography (NEG), and expounds spillover channels of regional economic growth from flow of goods, flow of capital, labor migration, knowledge spillovers among regions. Then, according to this analytical framework, this paper makes an empirical study of the spillover-effect of regional economic growth in China.Firstly, Based on the China's multiregional IOT, this paper describes the inter-industrial linkages among regions in China; and then, using the Miller-Round model, the paper further analyses the spillover effect of regional economy in China. The result shows that the development of the East China has small spillover effect to the Midland China and West China, even smaller than of the Midland China and West China to the East China. This interaction mechanism among regions play an important role on the continually widening of economy gap between coastal region and inland region. Therefore, it is important to strengthen the inter-regions linkages and improve the regional economy spillovers, which makes for the development of every region in China.Secondly, this paper estimate the condition of trans-regional flow of capital in China, and one conclusion is that the capital government allocated flowed from eastern region to central and western regions, but the capital market allocated flowed from central and western regions to eastern region. The result of empirical study shows that with the progress of market integration, more and more private capital flowed from central and western regions to eastern developed region, and come into being the backwash effect. This phenomenon has not narrowed regional economy gap, but widened regional economy gap. On the understanding that there are finite capital and regional benefits, it is necessary that central government allocates capital.Thirdly, this paper deeply analyzes the condition of labor migration across regions in China based on the basic statistics on national population census and sample survey, describing the current trend of labor migration and the characteristics of migrants. Then, this paper studies the relationship between labor migration across regions and regional economic growth. The result of empirical study shows that labor immigration in eastern developed region can improve region's economic growth rate; For the net emigration regions, the growth rate of per-capita consumption and per-capita income will be increased greatly, and region's economic growth rate can also increases. To sum up, the results indicate that inter-region migration is helpful in national economic growth, due to the more efficiently allocation of labor in the regions. Therefore, it is very urgent to eliminate those institutional obstacles impeding labor mobility.Finally, this paper makes an empirical study on knowledge spillovers, and finds a technology spatial diffusion mechanism from high-technological region to low-technological region. For the central and western regions, it is very important to increase the investment in human resource and R&D expenditure, which will make for the improvement of capability in imitating and learning advanced technology, and obtain "Advantage of Backwardness".