Study On The Reason For Regional Disparity And Policies For Lest Developed Region

In the development process of Chinese economy, regional disparity is an inevitable ancillary product. The regional disparity between the eastern region, which is developing even more rapidly than the other region, and the lest developed region (LDR) (including the west and central regional of China) is enlarging in terms of Gini coefficient and theil index. The regional disparity will not only hinder economic growth of China as a whole but also act as a barrier for the realization of overall better-off society. Third, the inequity will be harmful for the stability of our border and be detrimental to the harmonious relationship with different minority groups. Regional policy can act as effective measures to tackle this problem. In this paper, after use the key component analysis, adduce the core causes for regional disparity. The aggregate variables of individual region (such as per capital GDP, the fiscal revenue .etc), the social undertaking and the efficiency of economic growth are the three components derived from the analysis and these cause can servers as target for regional policy. The implements of regional policy in EU and India have its unique characteristics. According to the characteristics of economic development in LDR under current situation, summarized the regional economic policy experience that our country has already implemented and pointed out some.defects of it. Then put forward some suggestion on the making of regional economic policy for LDR as follows: Strengthen propagation and education, making the harmonious development concept penetrate to all levels of development strategy of local government; Improve the regional economic zoning system, discern the problem area of the LDR; Improve the financial transfer payment system rationally, stresses the efficiency of related transferred fund and the characteristics of the regional economic policy tools packages; Promote effectively implemented the regional economic policy in LDR, and the evaluation of it by the means of projects management mechanism. Legislate for the implementation of the regional economic policy; improve every social undertaking in LDR with the regional economic policy.