Foreign Trade And The Unbalanced Development Of Regional Economy In China

China’s economy has grown very fast since the reform and opening up,but theproblem of regional economic development imbalance has become increasinglyprominent at the same time.Therefore,studying the relationship between China’sforeign trade and regional economic imbalance has some important and practicalsignificance.Firstly,this paper defines the regional economic developmentimbalance and summarizes the performances of it,then analyzes the evolution andthe current situation of China’s regional economic developmentimbalance,followed by a discussion of pros and cons of the regional economicdevelopment imbalance.On the basis above,this paper discusses the various factorsthat affect regional economic development imbalance,and provides a detailedanalysis on the internal mechanism of trade effects on regional economicdevelopment.In order to verify the theoretical analysis above,this paper uses thedata of30provinces(municipalities and autonomous regions) from2000to2008,and the methods of analysis of panel data model,to have an empirical analysisof the relationship between China’s foreign trade and regional economicimbalance.The empirical results show that the dependency ratio of China’s everyregion has a strong positive long-term impact on the level of the regionaleconomy,and exceeds the effects of the proportion of secondary industry and therole of FDI,but in the short term is not obvious;the long-term effect of capitalinvestment on regional economic development is smaller than short-termimpact,even the labor input has negative effects.This article concludes with acorresponding countermeasures and suggestions.