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A Spatial Econometric Study On Social Capital And Regional Economic Growth Convergence In China

Posted on:2013-02-13Degree:DoctorType:Dissertation
Country:ChinaCandidate:W H PengFull Text:PDF
GTID:1119330371980788Subject:Western economics
Abstract/Summary:PDF Full Text Request
The promotion and coordination development of rapid regional economic growth is the important task of economic development in China; since reform and opening up, there exists larger regional differences between regions in China, which has seriously affected the quality of economic and social development. Traditional research framework based on neo-classical economic theory, through research on convergence of regional economic growth to uncover factors which determine economic growth and to recommend appropriate policies, or from unbalanced development of regional economy theory, to put forward specific measures of intervention in the regional economic development. These conclusions for effect of the settlement of regional development disparity is not highlighted, because whether to use government means to replace market or to use policy to change the element configuration, it is easy to incur greater development opportunity costs, and has also led to new regional conflicts of interest.Through summarizing and analyzing the documents, and meticulous investigation of regional economic growth reality, this article found the existing research has largely ignored social factors which cannot be ruled out outside the mode. When the regional gap is systemic, even though they have a similar technology and preference, it is still difficult to converge to the same steady-state; this requires re-examining the role of social factors of economic development. The sociologists focus on these phenomena first and apply social capita this tool to conduct an in-depth study; due to there exists different social capital structure in different regions, people's capabilities of access to resources from the social capital are different and the same thing goes with the results. Social capital is a kind of economic resources existing in personal communication relationships, and is a social network and mutual trust and mutual profit model produced by the social network. Foreign scholars using social capital theory to explain a number of areas growth such as Italy, United Republic of Tanzania, as well as in the comparative study of Middle and Eastern Europe and Latin America, and so on, they basically revealed the internal connection of differences between social capital and regional economic development. In comparison, domestic literature focuses on a specific study on the relationship between social capital and economic development in some regions, and was mostly theory deduction which was based on case studies, lacking of system construction of social capital measurement index in detail, as well as the estimation of precise model. In particular, the 30-year reform and opening up to the regional economic development strategy and the implementation of market mechanisms, there exists close factor mobility and the economic links between the regional economy, affecting on the other areas through the spatial neighborhood effect. The following aspects have the important significance in solving the regional economic development differences and making the relative countermeasure:emphasizing the economic development embeds in the social network, using Spatial Econometrics to research the convergence of the regional economic growth, exploring the factors of leading to the regional economic growth differences, analyzing the mechanism of promoting the regional economic growth and the regional harmonious development.Through analyzing and carding the related research on social capital and regional economic growth convergence, this study make general ideas and structure of social capital and regional economic growth convergence. This article stated that the economic operation is not linearly independent process, and it is associated with profound internal relation with social structure. Regional economic growth is not only dependent on the quantity and quality of the supply from local resources but also dependent on growth in adjacent areas. This requires the use of spatial econometric theory and methods, constructing the economic growth model to incorporate social factors and spatial effects, in order to be more in line with the conclusions of economic operations. This study has the following five-points:(1) Study on the relationship between social capital and industrial labor productivity growth. Regional differences in industrial productivity were important aspects of regional economic growth, especially significant in the discussion for industrial labor productivity growth in the process of economic transition in China. Applying the production deviation in decomposition of industrial labor productivity in 31 provinces in China (urban) and studying its characteristics of time series and spatial features, this article in theory justifies a mechanism of social capital promotion for labor productivity growth. This article selects the educational structure, institutional structure, the production structure to represent the structure and level of social capital in the industrial sector, and controls over economic concentration and location variables, applies spatial econometric methods to do an empirical study on the relationship between social capital and regional industrial labor productivity. It is found that workers' education structures and production structure have a significant impact on industrial labor productivity.(2)Study on the relationship between social capital and regional farmers' income growth. Urban-rural dual economic structure is a prominent feature in China's economic development, this also reflects that study on farmers' income growth will help understand the importance of regional economic growth. This article multi-anglely analyzes and describes the regional differences of Chinese farmers' incomes, and studies farmer's family structure and nature of social capital based on the background of rural labor migration after reform and opening up. Space measuring empirical findings suggests that, the micro-level of social capital on farmer's income is less, and the influence of social capital on farmer's income at the level of society is larger, which suggests that peasant income growth and spatial structure remains subject to national reform processes and conditions.(3)Study on effect of foreign direct investment on regional economic growth from the perspective of social capital. Attracting foreign investment has been shown as an important force to promote China's regional economic growth and regional difference since the beginning of reform and opening up. In theory it has been justified the influence of social capital on growth performance of foreign-funded enterprise structure; on this basis this article classified and selected structural dimensions of foreign enterprise social capital, relations dimension of social capital and cognitive dimensions of social capital to do an empirical research on three types of indicators of social capital. Results suggest that social capital spatial difference is an important factor leading to the foreign investment behavior, which in turn have an impact on regional economic growth. Three levels of social capital's effects on mechanism and effect of regional economic growth vary. Employment structure of social capital is the most significant structure of social capital, and cognitive effects on social capital is not significant.(4)Research on the social capital and regional economic growth convergence. The existence of spatial convergence of regional economic growth in the empirical study of literature is in a variety of findings, but most of the studies have not incorporated spatial interaction models, so the conclusion is not so sound. By constructing the spatial weigh matrix, the growth datum of the 31 provinces from 1985 to 2009 are divided into the fourteen rolling time series method according to every twenty years, and then analyzing them. The results show that the regional economic growth don't existσconvergence, non-conditional P convergence only exists with a certain period. This is consistent withσconvergence result that is studied by analysis of variance and Gini coefficient. But after bringing the social capital into the model, the fourteen rolling time series exists the different extent conditionalβconvergence phenomenon. This implies the initial condition of the regional economic growth and the regional differential development open strategy will bring into the profound impact on the regional economic growth convergence.(5)Research on regional economic growth policies from the perspective of social capital. This article reviewed the policy process and effect evaluation of regional economic growth in China, and dealt with regional economic growth requirements to social structure environment from three aspects of shift from regional economic growth determinants, evaluation system and from regional coordinated development requirement. On this basis this article put forward policy recommendations to invest was social capital for regional economic growth.The main points of this study and its policy implication are the following:First, the Spatial autocorrelation characteristics of regional economic growth is all the same, whether it is from the index of industrial labor productivity, or farmers'income or regional per capita income. The provinces with high levels of economic growth their surrounding provinces have high levels of economic growth, and shows that economic phenomena of regional economic units are under the influence of its adjacent areas. Its policy significance is, when making strategies of regional economic development, it should consider regional differences and regional relation, and then incorporate overall objective of regional economic development with individual goals together.Second, for the social capital's strong effects on regional economic growth, it needs to tackle the social factor carefully when studying the differences of regional economic growth in China. By studying social structures and their properties in which the economic agents are embedded and putting social capital variables into economic models, the so-obtained empirical research results would be more in line with economic running reality. Its policy meaning is, when making regional economic development policies, it should incorprate factors of promoting the social structure changes and interactions between economic agents and social factors into the programmes.Third, there exists complexity in social capital for regional economic growth mechanism, and the same goes with its regional economic growth performance of social capital of different structures. Overall, building good social structures to promote social capital is the starting point of formulating policies, but for different goals require specific analysis of regional economic growth, it should make related policies according to the mechanism of social capital.Four, there is no absolute convergence of regional economic growth convergence in China as a whole, but there are conditional P convergence only exists with a certain period. From 1985 to 2009, as time goes by regional economic growth convergence becoming slower, this shows that with the deepening of reform and opening up process and market-oriented, economic development more and more depends on the social environment; in particular, the long-term implementation of China's regional development difference strategy results to differences of regional growth becoming more pronounced.
Keywords/Search Tags:Social Capital, Regional Economic Growth, Convergence, Spatial Econometrics
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