Under The Neo-liberal Economics Perspective Of Regional Economic Differences In Cycle Fluctuations

Regional economic disparity as the focus of academic research, it always has been the goals of regional economics and related disciplines of economic to grasp correctly the changes of regional economic disparity as references provided for the correct socio—economic policies of the adjustment of regional economic disparity.Taking overviews of existing regional economic disparities literatures, there is a ambiguous fact: the process of regional economic disparity is always considered as the single inverted U—type process or the process of convergence or divergence as ambiguous results.In this paper, the basic ideas and conclusions derived from the neo-liberalism economic theory is explored in the process of regional economic disparities changes, which is identified as a combination of cycle parts and short—term fluctuations parts. Regional economic disparity is a periodic fluctuation process rather than a simple inverted U type. Through establishment of the regional economic disparity cyclical fluctuations theory, it outlines appropriate methods and standards. In order to verify the regional disparity cyclical fluctuations theory and methods, the paper uses per capita GDP from 1952 to 2008 to calculate regional economic disparity. We choose four coefficients with the growth rates and absolute or comparative disparity values to find out the cycle parts and short-term fluctuation parts with traditional cyclical fluctuation and modern HP methods. The paper also adopts'Theil'index to get contributions of inter and inner-regional economic disparities. At last, the paper analyzes the effects and mechanism of short-term fluctuation consisted of the Export, Consumptions, the fixed Investment and financial investment. Of the conclusion, the paper concludes Chinese regional economic disparity has two parts comprised of three cycles and lots of short-term fluctuations during 60 years.