Research On The Convergence Of Six Provinces In Central China Economy

Since the reform and opening up, the economic gap between the eastern a-nd Mid-western area in China gradually expand.The nation put forward CentralRise Strategy based on the “gap”. With the regional development policy hasbeen tilt to the middle area,the middle area grasp the opportunities to acquire-a high speed development since the new century，however, the district economi-c imbalance is sharpening. How to take effective measures to narrow the econ-omic gap between the areas, achieving coordinated development within the mid-dle area,is a big problem which the local government have to face.The article selects the six provinces of central area which is adjacent(Yu,-E, Xiang,Gan, Wan,Jin) as the research object(from2001to2010).Combining t-he method of the traditional model and spatial econometric model,analyzed theeconomic convergence with the six provinces. Result shows that economic co-nvergence does not exist in the six provinces, namely the economic gap betwe-en the regions within the six provinces continues to expand.Morever,there are a-t least two economic convergence clubs in the whole area.Through the convergence model we can find factors which promote econo-mic convergence include industrialization, the investment in fixed assets and hu-man capital.Factors which expand the gap between areas include urbanization, s-avings rate and government spending.With the estimation of the spatial correla-tion of the six province,we can find the spatial related degree of Output per c-apita gradually strengthened year by year.Take spatial variable into the convergence model results in the industrialization level, human capital and saving ratesexist spatial transmission mechanism which promote the economic convergencewithin the six provinces.With time passes by, gap of Investment on fixed asse-ts between areas narrows. Urbanization exists a big differences between regions,which is unfavorable for economic convergence of the six provinces. The dist-rict government spending level change a little which indicates that the intervent-ion government make on the market have no obvious relax, which is also unfa-vorable for economic convergence of the six provinces. From spatial distributio-n perspective we can find that economic convergence mainly concentrates in th-e area which include regional central city and relatively backward area around the central city (such as wuhan urban agglomeration, changsha urban agglomeration, etc). Areas which is far from the central city have a relatively slow spe-ed.What these areas need to do is speeding up the process of urbanization, gui-ding a reasonable consumption as well as reducing the excessive intervention g-overnment makes to the market to give full play to the market mechanism fun-ction.