Research On Factors Which Lead To The Economic Development Disparities Of The Five Provinces In North China

The phenomenon of regional economic disparity exists almost in everywhere in theworld. The problem has been very serious in our country for a long time, and manyscholars have pay much attention to the problem since it occurred. But now, theresearch of regional disparity mainly focuses on the whole nation and inside someprovinces, there are few researches focus on the areas including some provinces. Thispaper studies the economic development disparity of five provinces of north China. Thearea of north China includes two advanced municipalities Beijing and Tianjin, threeunderdeveloped provinces Shanxi, Hebei and Neimenggu. Because of the particularityof this area’s composition, its development cannot be confined to each place itself, itshould be studied as a whole. The study on the whole area can offer help for thedecision-making for the whole area and each place. At the same time, the study on thevarious factors which affect the regional disparity can put forward suggestions on thecoordinated economic development in a more specific way.This article firstly measured the per capita GDP changes of the five northernprovinces from2002to2011in two ways, measurement of absolute and relativedifferences, it showed that the absolute difference in the area is expanding and therelative difference is narrowing. Secondly, at the base of analysis and studying previousstudies, this article put forward a dozen factors which affect the regional economicdifferences, and classified them elaborately according to the actual situation of the fiveprovinces. Then, the article chose eight specific indicators and used ten years ofregional economic panel data to analyze in economic quantitative methods. Theempirical results showed that the two major factors, institutional factors and productionfactors both have their own different major impact on economic developmentdifferences. Finally, based on empirical research findings as well as the foregoinganalysis, the article gave its policy recommendations on the five provinces’ coordinateeconomic development from institutional, production and other aspects.