China’s Regional Disparityes And Influence Factors Analysis

There are two stages about China’s regional development strategy: balanced development and non-balanced development. Before the reform and opening up, the regional development policies as well as the regional industrial layout are in favor of the backward areas so as to boost the economic development of the backward areas and assure national security, due to various reasons, the Region growth is inefficient; since the reform and opening-up, in order to accelerate the overall economic growth rate of the country, the priority development area began to tilt to the eastern coastal areas with better natural conditions, which makes regional disparities in china worse. Therefore, the implementation of a coordinated regional development is imminent.The main of this article is divided into three main parts:According to the traditional division of the three regions, First, by taking use of various statistical indicators of regional disparities in the status quo. We find that both for the total economy, the per capita GDP, or social development level, the gap between the regions was relatively large, especially between eastern and western. Secondly, drawing on the basis of previous studies, we analyze the main factors of regional disparity. Overall, the influencing factors of regional disparity can be grouped into three categories:inputs factors, policy and institutional factors, economic and structural factors. In factor inputs, compared with the eastern part, western part is in a serious shortage of both in physical capital or human capital, and the lack of factor inputs due to slow economic growth and reduce the attractiveness of the central and western regions of the factors of production in the region, Quality factors of production outflow tendency, which, in turn, exacerbated the situation of insufficient inputs. From the point of Policy and institutional factors, the development of the central government decision-making a great impact on the gap between the east and west. Before the reform and opening up, based on a balanced layout and productivity considerations, policy tilt favoring the central and western regions of the country, the gap of regions has narrowed. After the reform and opening up, the government’s consideration is mainly based on the quality and efficiency of economic development, policy preferences favoring the eastern region, which makes the speed of development of the eastern region was significantly higher than the central and western regions, the central government decision to expand regional disparity. In the building of systems, the eastern region due to the opening up of the environment, its culture more inclusive, easy to accept new things, dare to do things, the Midwest due to the location of the occlusion, making it the concept of consciousness backward and old-fashioned, therefore in the process of transition from a planned economy to a market economy, the eastern part is in the higher state, which grow the gap between the regions. From the point of structural factors, it’s also impacted by the national policies, before the reform and opening up in order to balanced regional development, state investment tilt central and western regions, which lead to the formation of a large number of state-owned enterprises. However in that state the government did not take into account over the comparative advantage, so most of the state-owned enterprises lacking of viability has become a burden in the economic reform process, the burden of eastern region is relatively lighter, its ownership structure and industrial structure adjustment process encountered less difficulties, central and western regions is difficult, so that its economic development lack of vitality.On the basis of the analysis of the main factors affecting regional development and regional disparities, we decompose the Theil index on regional disparities so as to measure the contribution of regional gap and regional gap between China’s eastern, central and western three regional disparities. Empirical studies have found that the industrial structure, the per capita investment in fixed assets, foreign trade, and human resource situation have the greatest impact on the level of economic development and its gap between the different regions of China. Finally, the article on how to reduce regional disparities put forward relevant policy recommendations, including to improve the institutional environment, the establishment of a unified market; continue to implement the policy preferences of the central and western regions, and guide the parties to increase investment in the central and the western region; cultivate the central and western regions growth pole, to the end of the growth impetus to regional economic development; accelerate the construction of transportation infrastructure, reduce distribution costs; increase the introduction of human efforts to increase investment in education.