The Comparative Analysis On Spread-Backwash Effect Of Changzhutan And Changsanjiao Regional Economy

"Changzhutan"region, as the growth pole of Hunan province, has drawn great interest from scholars and policy makers. It is not only listed among the seven key regions with the priority to develop in the National Tenth Five-year Plan, but also in the CDS plan supported by the World Bank. These policies on"Changzhutan"region is undoubtedly aimed at driving the development of Hunan province and the entire central region. As a result, studying the mechanism on the growth pole of"Changzhutan"and proposing policies to promote the effect of this growth pole on regional economic convergence in Hunan province are the focus of this paper.Because the spread-backwash effects are the main interactions in regional economic activities as a result of the impact of a growth pole, this paper is based on the theory of the spread-backwash effects, and uses the spatial econometric analysis to analyze the spread and backwash effects of"Changzhutan"region. Firstly, this paper has constructed a model to examine the spread-backwash effect of the general economy and performed the regressions based on the panel data. The result has proved that the three cities (Changsha, Zhuzhou, Xiangtan) are the growth pole of Hunan provice, and also shown that the three cities have exerted backwash effect on each other and exerted the spread effect on the adjacent non-central cites. The non-central cities in Changzhutan region have exerted the spread effect on the adjacent cities. Comparing with"Changsanjiao"region, the backwash effect between the central cities in"Changzhutan"is weaker and the spread effect of the central cities on adjacent non-central cities is stronger.Secondly, since FDI has an important affect on the regional economic development, this paper has placed emphasis upon the spatial economic relationship of FDI between different levels of cities in the region. We have constructed an extended model to examine the spread-backwash effects of FDI between cities in the region. The results show that the spread and backwash effects of FDI growth in"Changzhutan"region are statistically insignificant, but the FDI growth of central cities exerts the spread effect on the adjacent non-central cities in"Changsanjiao"region. Comparing the results of the two regions, we believe that the level of FDI is low and the scales of the three central cities are small in"Changzhutan"region, so it maybe difficult for FDI growth to exert the spread effect as in"Changsanjiao"region. Finally, we discussed policy implications based on the model results.