An Analysis On The Disparity Of Regional Economic Growth And Its Influence Factors In China

Since1978, great achievements have been made in economic development inChina, and the Gross Domestic Product has increased by nearly twenty times, with theincrease rate at an average of9.91%. However, the regional disparity in China isincreasing at the same time of the fast growth of economy, which will go against thesustainable soico-economic development of China. It is necessary to analyze the deepreasons, which lead to the difference of regional economic growth. On the basis of theexisting regional economic development and the economic growth convergence, thisdissertation measures the disparity of the regional economy, and analyzes theconvergence of China’s economic growth with the empirical method.The dissertation mainly includes three parts: the text theory research, theempirical analysis and conclusions. The second chapter is on the theoretical analysis,which mainly introduces the theories of regional economic disparity, including theregional balance growth theory and the regional unbalance growth theory, andintroduces single index measure and multiple index measure. At last, the paperintroduces the economic convergence related theories, mainly on the concept andtheory of economic convergence.The third, fourth and fifth chapters are mainly on the empirical aspects. Thirdchapter adopts the single index measure, multiple index measure and the factoranalysis on the evolution of China’s economic differences. In different area therelatively disparity of per capita is narrow but the absolutely disparity is still big. Theabsolute disparity shows an enlarging trend. The Gini coefficient of per capita is pourN type change, experience to reduce expand and then decrease after the process. Theincome of the local resident is showing a growing trend overall during1978-2010, therelative inequality experiences the process of decreasing first and then increasing, butthe absolute disparity is constantly expending; The Gini coefficient of the ruralresidents income is also experiencing the process of decreasing first and thenincreasing, finally in a range of fluctuation. During1978-2010, the urban residentsincome is growing, and the relative disparity experiences the process of first increase and decrease, but the absolute disparity tends to be expanded.The fourth chapter adopts the economic convergence theory to test Chinaeconomy whether meets the σ convergence, β convergence or club convergence.China economy is meeting the σ convergence in1978-2010; the performance of theconvergence of east, middle and west areas is not the same, and the eastern region andthe middle region are meeting σ convergence, but the standard deviation results of percapita GDP in the western shows the process does not always satisfy σ convergence,but the results of the coefficient of variation shows the western region is meeting theσ convergence. China economy meets the absolute β convergence in1978-2010, butin the period1991-2003the economy tends to spread, and the economy also meetsabsolute β convergence during1978-1990and2004-2010. The east, middle andwest meet the club convergence. The country and the east, middle and west zones aresatisfied the conditional convergence.The fifth chapter analyzes the causes that format China regional economicdifference from the qualitative and empirical analysis. First analysis qualitative fromgeographical location, policy system, capital factor, population development,technological progress and industrial structure, then empirical analysis the influencefactors of Chinese regional economy disparity based on qualitative analysis, the resultshows that the system change, capital, technology, economic openness and industrystructure have remarkable effect to the economic growth in China. During the1978-2010, the degree of marketization, per capita investment in fixed assets, humancapital, investment in science and technology, foreign trade level as well as theindustrial structure have promoted effect to China’s economic growth. The influencefactors of economic growth in the east, middle and west are not identical, the easternarea is positively effected by the investment in fixed assets, human capital, investmentin science and technology, foreign trade level as well as the industrial structure. Themiddle area is positively effected by the degree of marketization, per capita investmentin fixed assets, human capital, investment in science and technology and industrialstructure. The western area is positively effected by per capita investment in fixedassets, human capital and the level of foreign trade.