Economic Growth Disparity And Convergence Among Western Regions

Economic growth has been the main research topic of economics for a long time. It is the premise and base of the economic development and the improvement of society to a nation or a region. Economists always paid more attention on the long-run trend than the inner mechanism of the economic growth. By convergence hypothesis based on the neoclassical economic growth theories, the attracting anticipation to the long-run trend of regional economic growth was put forward and the powerful explanation for economic disparity exists among districts was given. Therefore,lots of scholars in different nations study the issues of convergence or divergence, the speed of convergence and cause of convergence.Since the developing of the western regions, the economic efficiency has been greatly enhanced, the allocation of resources has been optimized, economy has maintained a rapid sustained growth, and the level of the total economy has entered a new stage. However, the economic disparity among western provinces also shows a widening trend. Therefore, it is necessary to analyze the convergence of the western regions'.On basis of analyzing all kinds of hypothesis of convergence, this paper uses panel data model to analyze the convergence of the western regions and observe changes in the economic growth convergence of it. It also analyzes how human capital, capital investment and fiscal policy affect the economic growth and convergence in the western regions. Then it discusses the effective measures of how to narrow the disparity among western regions.