| At present the economic development and comparative advantages in the spatial distribution is extremely uneven in China, and what is the inner mechanism in this phenomenon of regional differentiation? This paper attempts to provide a new perspective for the imbalance of industrial and the generation mechanism of regional distribution patterns in China based on the theoretical framework of soft input theory proposed by Professor Li Guozhang, School of Economics, Lanzhou University. This paper describes the economic development and spatial distribution in China since the reform and the opening-up, through the theoretical study and empirical analysis to research the influence mechanism of industrial agglomeration and the difference effect generated from the industrial agglomeration. This paper based on soft input theory uses the incremental input output table, DEA, SFA and other empirical methods to research the industrial structure, production efficiency and difference factors of regional development, and based on the aforesaid research study the intrinsic relations among the TFP, industrial structure and regional economic development in China, and tries to provide a new analysis perspective based on soft input theory from the view of regional factor endowment, production efficiency, industrial structure and regional economic development and analyze them from a open and special view.From the first part to the second part, this papaer tells the introduction and the document summary. In the third part this paper firstly describe the industrial structure and regional development in China, and then uses the panel data coming from east, middle, west regions in China from1996to2008to research the difference of regional economic development and the effective mechanism based on the emprical methods of cointegration and other tools. The result tells there existing a long-term balance relations among the regional economic growth, institutional differences and other control variales, and thses differences leads to some influces to the developemnt of regional development. Under the conditions of different constraints, there are the mutual relations between GDP and opening-up, therefore the institution of narrowing the regional development gap and establishing a long-term sustainable development mechanism is very important for China. Form the fourth part to sixth part, firstly uses shift-share, soft input theory and increment input-output table to research the relations between industrial structure and productivity in China. And then uses the panel data from1998to2007, methods of SFA, DEA, and included angle of soft input theory, and CD and translog functions, to research the production elasticity, TFP and production efficiency change of provinces, regions and country, specially for west regions, the results tells that the elasticity of capital is more than labor.Based on the research, from1998to2007TFP of east is highest among east, middle and west, therefore, this paper thinks TFP is a major factor to causes the regional development difference of economy and society and it is a very effective method to develop the economic growth and reduce the interregional difference through enhancing the soft input quality in west China. This paper thinks the industrial structure difference, specially the secondary industry and the tertiary industry, especially the manufacture industry agglomerate to east costal regions, which leads to the interregional TFP difference is a leading reason to cause the regional development difference, but this kind of difference is beneficial for the present development in China and is not well for long-term development. It is very difficult to reduce the second industry gap between China and developed counties and regions, the best way to reduce the economic development gap between China and developed counties and regions is to make the economy of China become more open and break the route dependence and the lock-in effect, establish the economic development strategy with the core of the service industry, dynamically enhance regional TFP and narrow the development difference among regions, so as to establish a harmonious society. The regional spatial agglomeration of economy is a necessary period for development of China and presently continues to the economic agglomeration in China and in a long-term plan, this paper thinks it is very reasonable to build a balanced development mechanism.Based on the research, middle and west regions shall build a development pattern which is core of presently giving more investment into manufacture and in a long run shall change into service industry, east region shall establish a high-tech and high value added based structure of the second and tertiary industries, optimize the industrial structure, foster science and technology, improve production efficiency, and middle and west regions shall receive the industries transferred from east costal region, give more support for development of east region, and try best to narrow the interregional development gap.In summary, this paper uses theoretical and empirical analysis, based on soft input theory, from the perspectives of industrial structure and productivity to research the regional development difference in China. Through a brief analysis of economic development in China, this paper thinks it is a best way to narrow regional development gap and develop west region, which is to improve and optimize the soft input combination quality, reduce the constraint of soft input, enhance the system quality of institution and policy, break the route dependence and the lock-in effect, establish the economic development strategy with the core of the service industry, build the tertiary industry as the core of the economic development system. Middle and west regions shall speed up the urbanization and industrial structure upgrade, which based on more investment in to middle and regions, which is the policy of development of west China and rise of central China. In the future research, this paper will use spatial dynamic panel methods, nonparametric methods and theory of dynamic soft-input methods-related research.
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