A Study On China's Regional Economic Inequality And Co-ordinated Development Since 1978

Since the reform and opening-up in 1978, the central government has adopted the strategy of preferential development of east, thus having made sizable effects. Within a healthy way fast at the speed of 10% for every year on average in national economy for over 20 years, the people's living standards are improving constantly, the overall national strength is being strengthened constantly and the Chinese economic status in the world is being improved day by day too. However, China's disequilibrium development strategy has brought quite a lot of drawbacks, having produced various contradictions and questions, and the enlargement of regional economy disparity is an outstanding problem. This paper has carried on real example analysis to the regional economy difference after China's reform and opening-up, have found out the main reason for influencing the regional economy difference of our country, and put forward the policy recommendations for structuring the harmonious society and narrowing the economic difference in every area,In examining China's the regional economy disparity regarding province grade as the unit, this paper have used many kinds of methods , such as coefficient of standard deviation, extremely bad , coefficient of variation, extreme value rate , Gini coefficient and Theil coefficient included in relative difference and absolute difference ,etc. the analysis result of real example shows, since 1978, the absolute difference of China has been showing a tendency to expand all the time , and the relative difference kept shrinking in the 1990s, expanded rapidly after the 1990s, slowing down to some extent in speed after 21st century. Through decomposing the Gini coefficient and Theil coefficient into three regions, the conclusion show that economic difference on the three regions widen gradually all the time since reform and opening-up, and the disparity inter-regions keeps shrinking. The impact of intra-regions on national overall regional economy difference is more remarkable than inter-regions, and the economic difference of the Eastern Province behaves outstandingly among them. Carrying on the resolving of Gini coefficient to per capita GDP in three industry, it is found that the secondary industry has been playing a role in expanding the difference to Gini coefficient all the time, primary industry and the secondary industry play a role in reducing overall uneven degree.The reasons that lead in regional disparity are complicated. Based on Chen's analysis frame, this paper is analyzed the reason for expanding disparity from six respects. In respect of factor, because the commodity economy consciousness in the eastern area is strong and there are convenient transportation advantages for nearing coast in geography, east area attracts more domestic-investment and the foreign capitals than others. And the capital is using in no danger and the payback is higher than other areas, so the sufficient capital promotes the high growth of the eastern regional economy. In addition, because the salary of eastern area is high and the treatment is good, the inland workforce is attracted to the coastal area too. The central and west regions lack technicians and entrepreneur rich in the initiative spirit, thus leading in backwardness in developing. Because of the advantage of the capital and workforce, the east region develops fast, and the ability to introduce and absorb technology is better than hinterland, the paces of technological innovation are faster than the central and west regions too, so the advantage of the key element makes the east already in the position of holding a safe lead. In industrial structure, the development speed of the secondary and tertiary industries of east region is very fast, but the state-owned enterprise of central and west regions is too big in specific gravity, so the industrial structure is unreasonable seriously and repeated construction is serious. In geographical position, for adjoining the coastal area in the east, enjoying the advantage opening to the outside world and low-priced transportation cost, the eastern climate is suitable for the crops to grow and people to live. This is the reason causing disparity to expand. In policy and system, because the business consciousness in the eastern area is strong, the market-based process is faster and preferential policy that country offer more, but the large proportion of state-owned enterprise of central and west regions, the thought is guarded and sealed and preferential policies enjoyed little, this is an important reason that can't be ignored for widening disparity.The effect of population and urbanization on economic growth is ignored for a long time. This text uses econometrical Co-integration test and Granger causality test to examine the impact of the population and urbanization on economic growth in every province. In analyzing progress, the population variable is divided into the size of population and quality. Whole analysis result shows that population quality in most provinces contribute the larger to economic growth in the economically developed provinces, and the size of population hinders function from being the more obvious to economic growth in the more people province. The result of Granger causality tests show that the economic growth is generally shown as the reason why the size of population increases besides a few provinces and the population quality has completely promoted the economic growth. Through analyzing the impact of urbanization on economic growth, the results show the impact of urbanization on provincial economic growth of the urbanization is positive correlation. Urbanization is not only a result of economic development but also in fact an important insurance that a country solves the problem that one's own economy appears in the evolution too.The article is put forward suggestion of pertinence in five respects, such as adjusting industrial structure, perfecting and deepening the economic system reform, strengthening the policy guidance and supporting the backward areas'development, developing education and improving the health of the people, using growth polar to promote coordinated national regional development etc.