The Convergence Of China Economy: The Experience Analyses Included Institution Variables

Since 1978, the economic of our nation has developed fiercely, the income of each person has promoted quickly. However, as the degree of the reform and opening up goes deeper and deeper, the difference of the level of the income from each province became large and large, especially after 20 century 90s. Although the difference of the district is inescapability, the existence of the difference may affect the efficiency of the whole economy, and it is also bad for the welfare of the whole society'. To the worse ,the difference is expanded every year. So, if the difference can shrink or not ,or in which condition the difference can shrink has became the focus of the scholar from home and abroad.Firstly ,the article introduce the origin of the theory of the economic convergence, and then review the result of the analysis of our country's data done by the scholar from home and abroad. For now, there's different attitudes towards the result whether our country exist the economic convergence, the article use theσand ? test tool to have a test about the dispute. The data is from 1993-2006, since from 1993, our China has built the market economic system, the result of the test has more practical significance. After the test ,we concluded that there wasn't obvious convergence throughout our country during the 14 years.And then ,we use the 14 years data from 1993-2006 of each province to validate the result of that there was"Club Convergence"throughout our country. But the ourcome is amazing : in our result, there wasn't obvious"Club Convergence"in China, only middle zone accorded with the character of the"Club Convergence"during the 14 years. Other zones like east and west present the Divergent phenomenon.To the issue of conditional convergence, we combine the institution ingredient with the new economic growth theory, utilizing the institution and the technology to explain the difference of the economic growth between the different province. In the empirical approach section, this article use many index from each province to test the relationship of each index and the economic growth. In the end ,we found that the human resource, the process of industrialization, the level of marketization and the degree of openness are the important ingredients to promote China's district convergence. So at last, the article made a package of the policy in order to accelerate our country's convergence.