The Empirical Research Of Economic Growth In Liaoning Province Based On The Theory Of Economic Convergence

In recent years, as the development of economic growth theory and the abundanceof the concept of convergence, whether there is a trend of convergence in the regionaleconomic growth became one of the hottest topics discussed by scholars in manycountries. The theory of economic growth convergence can not only describes whetherthere is a trend of convergence in the economies, but can analyse the reasons of thedivergent of economic growth, therefore it is more and more applied in the relatedstudies in economic growth areas.Since the reform and open policy, the economy in Liaoning Province has maderapid development, but at the same time,the phenomenon that the regional economicdevelopment is not balanced also became apparently, every city’s economic growthappear alienated development.The gap between regional economic becomes too wideand exists long time certainly will affect the harmony and stability of the whole socialand regional economic efficiency, so it is necessary to do research in the convergence ofeconomic growth in liaoning province, and then puts forward the policy to narrowregional economic difference.This article did an empirical analysis on whether there are convergence, convergence and club convergence of the economic growth in Liaoning Province in theperiod of1994-2008firstly after discussing the economic convergence theory,convergence relevant concepts and testing method. The analysis results show that from1994to2000, there are not convergence and absolute convergence in theLiaoning Province regional economic growth; in the period of2000-2008, thereare convergence and absolute convergence, but the degree of convergence isdifferent. There is conditional convergence in regional economic growth ofLiaoning province after putting virtual variables into the equation, the convergencetrend strengthens obviously. At the same time, from1994to2000, there isn’t clubconvergence in Liaoning province, but from2000to2008, there exists a certain degreeof club convergence.Based on the study above, this paper separately analyzes the influence degree that human capital, industrialization, urbanization and investment rate work on theconvergence. Put the four factors into the convergence model, through the inspection,this paper believes that between the year1994-2008, there exists a certain degree ofconditional convergence in the province, the four factors all have a certainly positivefunction to promote the convergence of economic growth, especially the human capitaland urbanization have a larger influence. Combine with the results, this paper putsforward five suggestions including increasing the accumulation of human capital,upgrading the industrial structure, promoting the development of urbanization in lessdeveloped regions, paying attention to raise the level of investment and strengtheningregional economic cooperation and technical collaboration in order to promote thebalanced development of economic growth in Liaoning province.