Research On Realization Mechanism Of Regional Backward Advantages

Unbalanced development of Chinese regional economy has become an impeding factor which impacts economy's further developments. As a result, narrow the economic gap among regions and achieve balanced regional economic developments have great significance on long-term sustainable development of Chinese economy. To realize the coordinated development of regional economy, the key is to address the economic development issue of late-developing regions. Late-developing regions have unique developing advantages because of their backwardness. If we can make full use of them we can bring out post interests. However, the post advantage is a kind of potential energy. How to transfer this potential energy into real productivity and developing momentum of late-developing regions? In this paper I start from the perspective of late-developing regions and discuss how to achieve the mechanism issues through building post advantage to transfer potential energy into practical productivity.The problem of regional economic disparities and regional economic coordinated development is one of the key subjects concerned by theory circle in recent years. Scholars carry out more in-depth discussions on this issue from different perspectives. Almost all of the relevant researches affirm the reality of existing disparities in Chinese regional economy. Especially from the middle and late 1990s, the gaps are widening. The main reasons for regional economic disparities include the regional material capital, human capital endowment, structural changes, market process, competition between local governments, nature, geography, history. For the research of coordinated regional economic development, at present most domestic scholars rely on convergence theory of western economics but consider inadequate of special time and stage which China is located in. Post-development economics theory of Marxism and backward advantage theory of Gerschenkron and other scholars give us enlightenments. They let us realize the real essence of problems from late-developing region's perspective.Although they have started late-developing regions and backward advantage researches in domestic areas, they are not systematic; we are still weak especially in the research of backward advantage's realization mechanism. This is the target of this paper.China has a long history of imbalance in regional economic developments. We can divide different regions which have different development situations into early-developing regions and late-developing regions. Since the late-developing regions have under-developed properties they have unique advantages, including the backward advantages of capital, backward advantages of technology, backward advantages of system and backward advantages of structure. Under the effects of diminishing marginal productivity of capital's role, it will lead capital transfer from early-developing regions to late-developing regions. So that late-developing regions can make use of capital's backward advantage. The existence gaps between technology and technology spillovers can make late-developing regions do imitation, innovation and full use of technical advantages through introduction of technology. Institutional change is a process of repeated trial, errors and adjustments. Chinese early-developing regions undergo this procedure in the process of reform and opening-up and form a series of efficient system, late-developing regions'transplant system, imitation and innovation. These can reduce the cost of changing the systems so as to make use of the backward advantages of systems. The industrial structure is constantly evolving with economic growth, the differences between early-developing regions and late-developing regions in the level of economic developments form gradient difference in industrial structure. Follow the adoption of industrial transfer of early-developing regions; late-developing regions can realize backward advantages.Enterprise is the most basic force to promote regional economic development as the main body of micro economics. Although enterprises in late-developing regions are in face of adverse living environment, they can make use of favorable conditions and existing resources; they can select appropriate modes of development which include entophytic model of development, implantable enterprise development model and hybrid model development. Entophytic enterprises still need growth through enterprise systematic innovation due to some problems in its own internal mechanisms. They will take cluster-style development model which also helps to promote regional economic growth. Implantable enterprises are those which compare with weak or non high-tech enterprises in late-developing regions. Follow by high-tech park construction and the introduction of"enclave business " concept we can also develop high technology companies on blank basis.The optimization and upgrading of industrial structure is an important way to promote regional economic developments. There are certain gradient differences between early-developing regions and late-developing regions. The late-developing regions make use of regional industrial structure adjustment opportunity, go through transfer of regional industries in ate-developing regions and accept more high level industrial technologies and radiations. However, the existence of industrial region's viscous transfer and lagging system of late-developing regions restrict the transfer from early-developing regions to late-developing regions. Under the promise of respecting economic laws, making use of appropriate policy and going through local government and central government's efforts of working together, we can promote regional transfer of industries. This has important promoting role for economic developments in late-developing regions.In coordinating regional economic developments, local governments and central government play different roles. There are differences between central government and local government, early-developing region and late-developing regions'government action and goals. The central government is on behalf of country's overall interest; the local government is not only an agent of central government but also a representative of local area interests, they conduct consistent interest game. In interest game the local government of late-developing region is always vulnerable, which will affect to achieve the goals of following regional coordinated economic developments. To change this situation, on one hand, we need the central government macro-control and early-developing region governments'overall consciousness; on the other hand, we still need late-developing region governments go through institutional innovation to improve competitiveness by their own efforts.This chapter puts forward a conclusion, defects and imperfections of the whole paper. This paper only occupies late-developing region and its advantages within the country; there is no discussion in regional late-developing area and its backward advantages; this paper only studies the formal system which impacts the realization of backward advantages, it does not make deep involving with informal systems; this paper is still inadequate in empirical research of provinces which achieve better performance in late-developing region. These issues are not fully carried out which will provide direction for my efforts in following-up researches.The main innovations of this paper includes:1.The innovation of research perspective. There are a lot of literatures which do research on Chinese regional economic development, but most of them are from macro points of view and adopts convergence theory of western economics to do empirical research. They start from single factor or multi-factors to make analysis on the reality and causes of regional economic gaps; and then put forward a number of economic policy proposals for regional coordinated developments. There is analysis which comes from the perspective of late-developing region; however, it is still relatively rare and not systematic. This paper selects the backward advantage perspective of late-developing region and makes analysis of regional economic development issues. These provide a perspective which is closer to focus, more theoretical and more practical for solving conflicts.2. Base on systematic analysis framework of backward advantage utilization. The prior theoretical researches including the research on regional backward advantages are mainly carried out from a technical point of view. They think the technology gaps are the reasons of lagging behind, the utilization of backward advantage is also the usage of technology backward advantage. This article believes that technology gap definitely is an important reason, but the backward system is the fundamental reason. The technology gaps are caused by backward system. Moreover, the utilization of technical backward advantage shall base on good institutional arrangements. In addition, fully utilization of capital and structure's backward advantages shall base on good system. As a result, this paper will establish a complete system analyzing framework and conduct in-depth discussions for the realization mechanism of regional backward advantages.3. The empirical analysis of regional backward advantages. There are rare studies on backward advantage study from regional perspective. The empirical research, in particular empirical research in system aspects is rare. In chapter 3 of this paper, it takes the development of Inner Mongolia dairy industry as example and makes analysis of successful experiences of growth-oriented enterprises in late-developing regions; in Chapter 4, this article takes Jilin province and Jiangsu province's relevant data and apply the manner of regression analysis to illustrate systematic differences between early-developing regions and late-developing regions ,then it will provide experiences and references for late-developing regions so as to improve systems and adjust industrial structure through connecting with early-developing regions.