| This thesis offers a comparative study of the disparities in economic development between eastern and western China by examining the reasons for those disparities, and determining whether or not western China has the potential for rapid development. To answer these two questions, this thesis first defines and differentiates eastern and western China. Next, the analysis measures the two regions' levels of economic development and the gaps between them using panel data to highlight the contributing factors. Based on those findings, I assess whether the west's resources can fuel rapid economic development.;To assess the factors contributing to the regional gaps in economic development, I employ a production function at the regional level. In addition to the model's typical factors of capital, human resources, and levels of technological development, I include another factor: natural resources. I demonstrate that natural resources are an important factor contributing to the regional disparity.;The thesis concludes that the regional disparities arise from gaps in human and natural resources. Even though western China has abundant natural resources, it fails to develop and employ them and, therefore, lags in development when compared with the east. Furthermore, this thesis goes on to show that: first, western China possesses the resources necessary for rapid economic development, and second, based on its current rate of development, western China requires at least 20 years to reach the development level of its eastern counterpart.;My concluding recommendations are that western China should use its natural resources to fuel greater economic development. In addition, the west should invest in human resources, develop a high-quality labor force, encourage high-tech industries such as science and energy, and find new ways to attract significant sources of investment capital. |
