The Influence Of Capital Stock On The Economic Disparities Between East China And West China & Analysis On 'Poverty Trap'

The economic disparities between east and west, which have been an issue held long inChinese history, have not only constrained the economic sustainable development in the longterm, affected national unity and stability of areas, but also deviated from our socialisticessential characteristic. The implement of the great west development strategy has realized thesignificant shift of the 21st century economic development strategy in the history of China.Being a significant strategic decision, it will have far-reaching influence, providingunprecedented opportunities for the economic speedup of minority nationality regions in thewest area, enhancing national unity, strengthening national defense and contributing to mutualdevelopment and prosperity among nations.Many views have been expressed on the cause ofthe disparities between areas. In this thesis, study on this issue is to be done from 'povertytrap' .This thesis consists of five chapters.The first chapter begins with the introduction ofresearch background and research status quo relating to the economic disparities between eastand west, then puts forward the research perspective adopted in this thesis and offersdefinition of relevant categories;and finally lists research framework and researchprocess.The second chapter studies the existing condition and the trend of the economicdisparities between east and west from the perspectives of gross output, output per-capita,industrial structure, production efficiency, and the degree of opening to the outside world.Thethird chapter proposes, basing on the existing calculating methods on capital stock and onsufficient consideration of the derivability of the data and applicability of the methods, theapproach to estimate capital stock and works out the estimation, then analyzes the capitalstock disparities between east and west with the help of the accessible data, and explores thedifferent functions that capital performs in the economic development of both the east areaand the west area. The fourth chapter discusses the mechanism of 'poverty trap' and itsexistence in Chinese economy.The fifth chapter advances the proposal of expediting theeconomic development in the west and shortening the disparities between east China and westChina.