A Study On The Regional Economic Discrepancy Of Greater China Economic Circle

Facing the economic multiplex development and the rapid growth of the integration of regional economics worldwide, East Asia is speeding up its pace of regional economy cooperation. In terms of global or regional strategy, China, as both of an economic power and politic power, needs to set up integration of regional economics and taking itself as a core. This strategy means to build a "Greater China Economic Circle" among four places across straits. Its development will influence the whole economic development of China in the future. It will also influence the economic development pattern of East Asia and even the whole Asian deeply. So the development issue of "Greater China economy circle" (GCEC) becomes a focus of present.From a practical point of view, whether the establishment of South-South type integration organization, or to create a North-South type integration organization; whether it is to eliminate trade barriers, or to promote the development of trade and economy, the ultimate goal is to promote economic growth, and narrow the economic gap. And strengthening regional economic cooperation, promoting regional economic integration process and narrowing the regional economic gap to achieve regional economic convergence, and promoting national economic growth become the world's important trends in the economic field, in view of this, We attempt to analyze the change trend of economic growth among four economies of "Greater China Economic Circle", and the effectiveness of policy instruments to narrow the gap.The article selects the convergence theory as theoretical foundation which has a powerful explanation on long-term trend of economic growth and the change of regional economic discrepancy. It states the meaning of "Greater China Economic Circle" (GCEC) with the modern economic analyzing method, carries on theoretical analysis and empirical analysis from history to present. Selecting per capita GDP of four economies from 1985 to 2008 as research object, there is a more comprehensive analysis of "Greater China economy circle"(GCEC) convergence problem of economic growth from the perspective of a convergence,βconvergence and random convergence,. The results show that it hasn't a convergence, but this discrepancy could disappear with suitable governmental suggestions and the speeding up trend. However, there is a obvious conditional convergence, so that the article analyzes the convergence path of "Greater China economy circle" (GCEC) economic growth and put forward suggestions for government to narrow the economic gap among four economies and strengthen the whole power of GCEC.