Empirical Study On The Convergence Of Difference In Economic Development Between Regions In China

Convergence Theory is one of key theories in the Economic Growth Theory. Convergence means that the difference in income between countries or regions decreases with the elapsing of time. Why Convergence Theory is of importance is that there are two reasons. Firstly, the checkout in the existence of the economic convergence is one of focus between new-classic Economic Growth Theory and new Growth Theory, that's to say, the controversy on convergence is the debate between the two theories to large extent. Secondly, essentially speaking, how to deal with economic convergence means how to answer the basic questions in Economics for the experts in the Economic Growth Theory, for example, why some countries become richer while others still remain poor? Whether poor countries catch up with rich ones or fall behind further? What the distribution of income between countries is like in the future?Convergence Theory contains very complex and important things. Since there exist many kinds of mechanism and force working on convergence or divergence, we can hardly use one integrated theory to explain the development of economy up to now. Factors affecting convergence or divergence include not only the degression of income, the progress of technology and the change of framework, but also the natural condition, the historical and cultural background, the regime, and religion, so only one theory hardly explain the enigma of blossom and downfall, so we must utilize some advanced econometric techniques and the entire insight to study convergence and economic growth.Based on the convergence theory in the documents about economic growth, the thesis makes the matrix, one kind of the methods about Spatial Econometrics, according to the spatial geographical ubiety between provinces in order to analyses empirically the difference about the economic growth between areas in the mainland since the open-door policy, especially the year 1990 from which the economy of China grows rapidly. Our results show that there is no obvious conditional convergence in china, that is, given the same level of human capital, market openness and other factors the economic provinces have demonstrated an unconspicuous growth convergence. But the club convergence has been obviously exhibited, that is, the output per capita congregates within the east, middle and west districts respectively. The outcome of the paper also shows that the commercial intercourse across provinces affects the growth convergence significantly. Enterprises play an important role in shortening the difference in economic development between regions and promoting the national economic development wholly.