An Analysis Framework Of Changing Trend And Reason Of Regional Economy's Disparity During The Transition Period

Since the reform and open policy, China has made great progress with GDP is keeping increasing with a rate of 9%. However, as the development of economy, especially after 90s, the regional economy disparity has been increasingly enlarged. China is the biggest among the developing countries. As the regional policy of our government changed greatly during reformation period, the regional economy disparity of China has ranked high in the world. The regional economy disparity and policy choice are essential parts of the total national economy, which will affect coordination development of economy and society in china. So it's an emergence to analyze the fact and tendency of the regional economy disparity and frame a reasonable solution.Convergence theory of economic growth becomes a common way of studying the regional economic disparity. It focuses on analyzing the relationship between original level and economic growth. It could find out the reason of disparity by analyzing the progress of economic growth. Based on the convergence theory this paper is divided into four parts. In part one, it introduces the purpose of writing, the method and the theoretical basement. In part two, it introduces the tendency of regional economy disparity according the new stander of regional measurirfg off. To find out the main part of regional economy disparity and its function, this paper analyzes the tendency of two kinds of regional economy disparity with Theil index, Furthermore tests whether or not the regional economy disparity has the phenomenon of "Club Convergence". In part three, it discusses the factors influencing the economic growth from the theoretic and empirical study according the economic growth of New Classic theory. This paper takes human capital, the condition of marketization, the degree of openness, the preference of policy and the constructer of industry into consideration to make it clear how far the marketization and the degree of government participation in market would influence in regional economic growth. What's more, this paper finds some valuable conclusion: there is no "Absolute Convergence "; the progress of marktization is the main factor that promotes economic growth. In part four this paper proposes some suggestion for the regional economy disparity.