Model And Empirical Research On Impacts Of Two Departments Factors Mobility On Regional Economic Structure

GDP Growth Rate of China fell to a record low among thirteen years in2012,some opinions view that as the end of34-year sustainable and speedy economic Growthsince1978. It seems that the internal economic structure problems of China play moreimportant role than the shrinking global demand market caused by the financial risk.These issues come with the China economic growth:fiscal decentralization and regionalcompetition create’regional economic development’with Chinese characteristics, andthese also cause increasing unbalanced regional economic development. With theaccelerating process of China’s economic development, contradictions of economicunbalanced development among province become increasingly prominent. The enduringand excessive enlarged disparity has been a threat to both the future overall economicstability and the effective allocation of economical factor resources among provinces.Therefore, both in-depth analyze the reasons of provincial uneven economicdevelopment and study on how to allocate product factors effectively have importantpractical significance to the steady growth of the China economy. Undering the analyzing framework of Dixit-Stiglitz, we obtain the theoreticalmodel of two factors of two regional two departments. We put the marginal productchange of mobile factors into the analysis of economic structure, and study on theimpacts of factors scale and direction on the economic structure and disparities. Firstly,we analyze single factor mobility. Secondly, based on the analysis of single factor, westudy impacts of both factors mobility on economic structure. Therefore, we establishfactors marginal product dynamic model. Finally, we make an empirical study onimpacts of factors mobility on China’s provinces economic structure anddisparities.Results shows that:(1) Putting factors marginal product change into theanalysis of regional economic structure is in line with the realities of China provinces (2)Empirical analysis of China’s industry shows that the downtrend of industrydevelopment become earlier than that of GDP growth. Capital mobility is deficiencies,while labor mobilith is relatively abundant.(3) Impacts of capital mobility on regionaleconomic structure and disparities depend on regional economic development, whilelabor mobility is benefit for both backward regional structure and contracting regionaleconomic disparities.