Reaserch On The Relationship Between Dynamic Externalities And Regional Economic Growth

The process of economic growth must be accompanied with agglomeration. The agglomeration brings about many externalities, including the externality of MAR, Jacobs, Porter, the existence and influence of which has been the popular research issue in recent years. Except for cracking many externalities of agglomeration, This paper also considers the influence of monetary externality to the production. According to the analysis of our country’s regional economic growth differences, this paper put forward the relevant policy suggestions.After analyzing the different externalities of growth on the theory level, we choose quantity index number to measure some externalities of provinces in many years, and do some descriptive analysis to the calculation results. Then, apply the panel data model to determine the interaction factors of many externalities in the whole country and each big zone level. The observation of "dynamic externalities" was carried out by lag regression model.The main points are as follows:(1). in1999-2004, China’s overall economic differences were growing larger, and then the differences became small year by year. The difference trends between regions are the same as in the national level, which is the main source of China’s overall economic differences. In terms of internal difference, the internal differences in eastern region greatly impact the national differences, at the same time, internal differences in the western region play an increasing role in the national differences. The internal differences in different regions are different, the changes of eastern and central regions become smaller, the northeast and the west area differences become bigger.(2). the dynamic effects of externalities are existent, and the impact on output is greater than static externalities. On the whole, the impact of externalities on output can last three lag terms, and in the third year(lags two), the impact reaches the maximum level.(3). the impact of MAR and Jacobs’s externalities on output are nonlinear. Generally speaking, every zone can get significant positive externalities from specialization externality, especially in the western region, the eastern region can benefit the higher level diverse positive externality, while the central and western regions are suffered.(4). Porter externality’s impact on output is also nonlinear, similar to other scholars’ conclusion, Porter externality in undeveloped area shows positive externality, but negative in developed area.(5). the market potential is significant to promote output growth, and it’s a potential reason which causes the accumulation and mobility of factor. But in the model, the effect of market potential is relatively weak.