Empirical Analysis Of Convergence And Conglomeration Of Wealth In China

Since neoclassical growth theory rose in the 1960's, the economic growth gap between nations or areas and its trend of changing have become one of the topics which were concerned very much. Neoclassical growth model indicated that economic growth would converge to a steady state because of marginal decrease of capital output. In this steady state, per capital output would be fixed and economic growth rate would approach zero. And different economic conditions lead to different steady state. The speeds of economic growth in rich countries would slow down while those in comparatively poor ones would be higher in this process. This phenomenon is so-called 'convergence' in economy growth theory.Economy growth in China keeps a high speed because of the Reform and Open policy. At the same time there were also many problems. This situation aroused many economists' interests, and they really did a lot of research from different angles. But the research for Chinese economy growth was varied and full of controversy. In essence, the economic growth is a dynamic social reproduction process based on various factors. The economic growth of a nation may have different growth modes during different periods. Before we analyse the economic growth convergence in China, several time periods have been divided by the analysis of change-points, and some regions were partitioned according to the indexes which are used to measure the development extent of regional economy. Analyzing the convergence of economic growth in this way can be regarded as the innovation on the way of thinking. We also have a new way to identify the locations and the numbers of the change-points.It is well-known that the way of allocating social wealth will affect economic growth in the future. We want to find out the allocation way of social wealth in China after we experienced the more-than-20-years' high-speed growth. For example, the allocation of per capita GDP among all the regions, whether there is any conglomeration in the allocation, and what the speed of conglomeration is if we already proved its existence. Therefore, this paper also has practical meaning as it pays attention to the allocation way of social wealth.