Chinese Regional Price Differences In The Status Quo And Its Impact Factor Analysis

Since the Reform and Opening, Chinese government gradually relieved the regulation of Price. This gave rise to the disport of price in different region. So, it is important to know if this kind of disparity will is temporary or will last long, and to know which factors bring this disparity.First will used the price index of 11 provinces since the year of 1979, conducting stationary test of each province's relative price to Beijing. The result shows that most of there relative prices do not have a trend of convergence. Then, we used the time series data of a stationary sample and the cross-section data to set up plural linear regression models to evaluate the decisive factors of price disparity of different region in China. The results show that economic volume and the contribution rate of tradable goods is the most important factors for price index. One the other hand, the Geographical factor has little relationship with regional price disparity in China.Based on the empirical results, we put forwards to suggestion of how to relieve this price disparity in China, Which includes:give policy support to less developed regions, encouraging the development of non-state-operated economy and improving the consumption ability of low income people.