A Study Of China’s Economic Growth Convergence And The Convergence Mechanism

Closing the gap of economic growth is an ancient and important issue in the field of economic growth research. Throughout the development’s history and the pattern of the world economy, wonder why do some economies growth rapidly and sustainedly? While other economies stagnat or even move into recessiong? Wonder what cause the growth gap of nearly 100 times between developed and poor economies? Economists have been actively exploring these issues over the past half-century. The hypothesis of the convergence of economic growth originated in neoclassical growth model in the 1960s. The convergence of economic growth is a vivid description of the narrowing of economic growth gap. This vocabulary undoubtedly is the most important in the research of modern economic growth. If the research of economic growth is the core of macroeconomics research, then the convergence of economic growth absolutely is a hot in the research of economic growth. The core of this thesis lies in the study of differences of economic growth rates between different economies and the reasons for these differences.As the largest developing country,rapid economic growth of China in the past 30 years has attracted the attention of the world. With the rapid development of economy,the argument over the gap of the regional economic development have been running. Rapid economic growth would improve people’s welfare level, but the convergence of the economic growth can enhance people’s happiness index. For China, a country that has a number of regions whose economic gap is obvious and lager, this topic is particularly realistic. The shrink or expand of regional economic gap in China firstly can be attributed to the differences in regional economic growth rate. A socialist harmonious society was proposed to build at the 4th session of 16th conference. From a macro perspective, the construction of a harmonious society requires the narrowing gap of economic growth between provinces and the state of convergence of it. To this end, the convergence of inter-provincial economic growth is the important economic foundation to build a harmonious society. It also is related to the success of the construction of harmonious society. The problems, such as whether there is convergence of inter-provincial economic growth, what degree evolution of convergence and divergence is and what is the internal mechanism of convergence, not only is the major issue that have to be faced to build comprehensive a harmonious society, but also the key issues tha have to be addressed to formulate appropriate development strategies and economic policies.Research on this topic, although many, but rarely involved the analysis of convergence mechanism. The purpose of the paper is to extend convergence proposition to the study of convergence mechanism. In this paper, we introduced the two kinds of convergence theory in Neo-classical and the New growth theory,gave the main development of the convergence theory,than summarized two mechanisms of convergence. On this basis, we proposed two analytical framework of convergence tests of regional economic growth:the basic MRW model and endogenous MRW model to examine the convergence of regional economic growth in China. This papar Studied the applicability of the two convergence mechanism in China and systematically answered the issue that the two convergence mechanism affected on the gap of regional economic growth in China.The paper analyzed the profound impact factors in the social, economy and other aspects that affected playing the role of two mechanisms of convergenc. Further the convergence of these factors were tested. And on the basis, policy suggestions were put forward to co-ordinate regional development.The paper is organized as follow:The introduction describes the research background, significance, research content and research methods. In chapter 1,this arctile states the theoretical foundation of the convergence of the economic growth,survey the literatures concerning the theme. In chapter 2, this arctile constructs the analytical framework of the basic MRW and on this basis constructs the analytical framework framework of the biochemical MRW based on the endogenous growth theory. In chapter 3, this arctile introduces the research methods and variables used in this paper. In chapter 4, the spatial pattern analysis and exploratory spatial data analysis of regional economic growth in China in the period 1993-2012 are carried out, and σ convergence analysis is carried out. In chapter 5, absolute convergence,conditional convergence,club convergence of regional economic growth in China in the period 1993-2012 are respectively tested by using two kinds of methods,which are the traditional measurement method and spatial econometrics method. In Chapter 6, this arctile analyzes the influence of the convergence mechanism of Neo-classical economics and technology diffusion theory in New growth theory on the gap of regional economic growth in China. In chapter 7, this arctile analyzes quantitatively the factors of capital accumulation and TFP, and testes the convergence of these factors to explain why the convergence mechanisms,which are predicted in growth theorys works( or doesn’t work). In chapter 7, from the perspective of promoting the convergence mechanism to play the role, policy recommendations are proposed to narrow the gap between China’s regional economic growth. In conclusion and outlook, this arctile summarizes the main conclusion, innovation, shortcoming and further research direction.