The Empirical Analysis Of The Factors Accounting For Disparities Of Regional Economy In The Inner Mongolia

Since2002,the Inner Mongolia has been ranking the first place ofeconomic growth rate in nine consecutive years, In2010the region’s GDP achieved1,167,200,000,000Yuan, since then the region became a member of Trillion Club.According to the evaluation results of the fifth edition economic competitiveness ofprovincial development report "（2009-2010）"from China Academy of SocialSciences, the Inner Mongolia ranked ten of the comprehensive competitivenessHowever, The economic gap between regions is increasing gradually while theeconomy of the Inner Mongolia is blooming enormously. The gap causesobstacles to the economic development of the most parts of Inner Mongolia. In orderto balance the development of regional economies, we must understand the regionaleconomic disparity in Inner Mongolia and the main influence for the status quo.Based on the existing theories and researches related to regional economy, thepaper starts. In the first place, it analyses the area based on dividing the whole areainto three regions: the middle region, the eastern region and the western region, thenanalyses the12parts of the area individually. It uses linear regression analysis andstatistic analysis as tools to study the current situation of regional economic disparitiesand the factors causing these disparities in the Inner Mongolia.To clarify the current situation of the disparities of in the Inner Mongolia area,the paper uses statistic analysis to study the variation tendency of two aspects: theabsolute difference and the relative difference.The conclusion suggests thatdisparities of every categories’ increases as the time passes. Meanwhile, the absolutedifference enlarges, when the relative difference decreases. In this situation, eventhough the difference is decreasing and the economy is increasing, the gap betweendeveloped areas and undeveloped areas will still open up. For analyzing the factors accounting for the disparities of county economy in theInner Mongolia area, it uses the linear regression analysis as tool. Five indicators arechosen, including the proportion of the secondary industry of GDP, the per-capitainvestments in fixed assets used the rural per-capita net income, the per-capita socialretail goods, the per-capita public financial expenditure. The conclusion is that thosefive indicators are all affecting the development and the disparities of regionaleconomy. Through the positive analysis, all of the five factors aforementioned relateto the development of economy, in some ways, the cause the economy gap betweenthe regions. The most powerful effect on the gap is the share of the secondary industryin the GDP, that means the Inner Mongolia is still occupied the industrialization initialstage, there is an urgent need to strengthen the position of the second industry ineconomic development.Generally speaking, measures must be taken to improve the condition proposingin the Inner Mongolia area. The government needs to adopt necessary measures, forinstance，strengthening the infrastructure, specializing the regional industry and takeadvantage of the "growth pole". After all, the government should take the differentinterior characters of regional economy into consideration, and put forward somestrategies.