Research On Regional Economic Disparities In Fujian Province

Regional economic growth and disparities are the two core issues of regional economic studies. China has sustained rapid economic growth during more than 30 years of reform and opening up. However, the implementation of leaning regional development strategies, significantly expand disparities in terms of the pace and the level of economic development among regions. And it also exacerbates inequality of infrastructure, people's living standards and public services in different regions. The central government has attached great importance to huge regional economic differences. Along with adjusting the overall and coordinated regional development strategy of the regional economic, the widening gap among regions has not been fundamentally reversed. The predecessors carried out in-depth studies on the issue of China's regional economic disparities in different levels and different perspectives. But on the whole, they primarily concerned disparities among the three areas as well as inter-provincial economic disparities, while the economic disparities within provinces are not paid enough attention. Fujian Province is located in eastern coastal areas, and has rapid economic growth. But compared with the neighboring Guangdong Province and Zhejiang Province, Fujian Province still falls behind in the level of economic growth and development. Especially in the context of international financial crisis and the new cross-strait exchange agreement was signed, it is necessary to carry out in-depth studies on the issue of causes of regional economic disparities in Fujian Province.For the measure of regional economic disparities in Fujian Province, this study bases on time-series and spatial perspective, and utilizes indicators including range (analysis), standard deviation, coefficient of variation, weighted coefficient of variation, Gini coefficient and Theil coefficient. The findings show that the relative regional economic difference in Fujian Province was always increasing from 1990 to 2002, while the relative regional economic difference has been declining after 2003. And the speed of decline has accelerated in recent years. This shows that even though the relative differences between the best developed regions and the most backward regions have narrowed and less developed regions have received relatively rapid development, it is noteworthy that the absolute difference in regional economy in Fujian Province has presented a whole growing trend.This paper analyses the evolution of spatial pattern in regional economic disparities by ranking GDP of prefecture-level cities in Fujian Province. The findings show that the spatial pattern of economic disparities in Fujian Province has evolved from dispersed state to core - periphery structure. The core areas are Fuzhou, Quanzhou and Xiamen, sub-peripheral areas are Sanming, Longyan and Putian, and the peripheral areas include Zhangzhou, Nanping and Ningde. It also can be considered that Fuzhou, Putian, Quanzhou, Xiamen, Sanming and Longyan constitute the core areas, and that Nanping, Ningde and Zhangzhou constitute the peripheral areas. Overall, spatial agglomeration trend is relatively obvious in Fujian Province. And we divide Fujian Province into coastal areas and inland areas, using Theil index of economic disparities in Fujian Province, we can find that the major components of regional economic differences is internal zone differences and internal differences in coastal areas is greater than internal differences in inland areas. Based on the previous analysis, we find that economic disparities in Fujian Province are mainly from the differences between core and periphery, rather than from internal differences of the core areas or peripheral areas. Therefore, the polarization trend of Fujian Provincial Economic should be paid enough attention by the government and appropriate measures should be taken to promote development in Zhangzhou, Nanping and Ningde.What cause regional economic disparities in Fujian Province. It is not only related to the differences of geographical environment, but also related to differences in other aspects such as economic base, fixed assets investment, industrial structure, infrastructure investment and Degree of Openness. Overall, the economic of core areas is dominant in Fujian Province. The economic of core areas has a rapid growth rate, and fixed assets investment, infrastructure investment, and foreign trade indicators have a higher proportion compared to other areas. Furthermore, industrial structure is at the highest level. Therefore, the core position is further consolidated and shows significant combined effect. In the foreseeable future, reducing economic disparities in Fujian Province is limited. It is noteworthy that in the southern and northern Fujian Province, the neighbor provinces are more developed provinces, in this case, the slow progress of economic development in these areas should be attached importance to by relevant departments.According to the situation and the cause of formation of regional economic disparities, the government needs to consolidate and further promote economic development of the core areas while more attention should be paid to infrastructure and public services in non-core areas in order to promote coordinated regional economic development in Fujian Province. Specifically, in order to reduce regional economic disparities in Fujian Province and to promote regional economic development the government should take the following measures: First, on the basis of a reasonable plan to speed up infrastructure construction in the northern mountainous area. Second, strengthen basic public services in the backward areas by giving greater support to the development of basic and vocational education, and to improvement of health care and social security system. Third, increase financial transfer payments to integrate industries in non-core areas into the industrial system in core areas. Fourth, to speed up the pace of opening up in less developed areas. Fifth, guide rational flow of labor.