China's Inter-provincial Economic Growth Convergence Analysis

Under the background of economic globalization and union,the hypothesis of convergence of economic growth has been analyzed with a lot of cases in different countries and areas, but the hypothesis has not been confirmed because of the complexity and diversity of the real world,so that the technological ways of the hypothesis has been doubted. However, the unique charm of convergence of economic growth attracts more and more economist to study it broadly and delicately. Chinese economics have realized rapid growth at whole up, at the same time, the difference of growth among the regions have absorbed many economist's extensive concern. The hot spots of economic growth Theories are How to interpret economics growing with the time and how to interpret the difference of the regions. Economic growth is a complex system in which all factors affect each other, therefore, we must research economic growth from the angle of system, we can achieve better conclusion. On base of analyzing all kinds of hypothesis of convergence, first, the paper adopts the data of pre capita GDP, we select standard difference and coefficient of variation to analyze the mechanism of σ convergence on Chinese three regions. On the Progress of analysis we draw the graphs of Excel which are clear for us to understand the mechanism of σ convergence on Chinese three regions. Second, on base of the theory of new classic economic growth, we adopt the Solow's models which added manpower capital by Mankiw Romer and Weil, and we select the data which are related to the models, We analyze the mechanism of convergence on Chinese economic growth. In order to get better conclusion, we select the panel data models and adopt many ways to estimate the models. On base of contrasting the result of estimation, we select the models which have a better result of estimation, which are the basis of analyzing the theory. After we analyze the convergence of the whole country, according to the characteristic ofChinese regions, we divide the whole country into three regions, and we inspect the convergence in the three regions. Although the ways of MRW have better ability to interpret the convergence of economic growth, it supposed that all the regions have same rate of technique progress. So the paper adopt Dowrick and Roger's models to analyze Chinese economic growth, the Dowrick and Roger's models which added the capital quantity to in MRW's models express the progressive of the marginal profit of capital affect on convergence, but the pre capita GDP was seen as Indentation of technology, which made it is possible to inspect both the convergence new classic and new economic growth. According to the Dowrick and Roger's models, the paper select panel data models to analyze the convergence of economic growth of the whole country and the three regions. According to the analysis, we find that the mechanism and characteristic of convergence Chinese economic growth. According to the analysis, we pose out some suggestion on Chinese economic growth.