A Research On The Spatial Allocation Of Production Factors And The Balance Of Regional Economic Development

In the 40 years of reform and opening up,China's economy has achieved rapid growth and has now become the world's second largest economy,creating a "Chinese miracle" that attracts worldwide attention.However,due to market-oriented reforms and expanding opening up to the outside world,as well as the implementation of non-equilibrium development strategies in a specific period of time,a large number of production factors have gathered in the eastern coastal areas of China,forming a"central" in the eastern coastal areas and a "outside" in the central and western regions.The economic geography of the periphery has widened the gap in economic development between regions.In the October 19th report of the party,Xi Jinping redefined the main social contradictions in China at the present stage,pointing out that"the main contradiction in China's society in the new era is the growing needs of the people and the inadequate development of imbalances." This unbalanced and insufficiency development is one of the important manifestations that shows the imbalanced regional economic development.Therefore,the imbalance of regional economic development has become the main contradiction of the current Chinese society and will be an important challenge in the new era.This thesis uses the theories and methods of political economics,space economics and economic geography to study the mechanism of the spatial distribution of production factors affecting the balance of regional economic development.This has important theoretical and practical significance.Through the analysis of the history and current situation of China's regional economic development,this paper adopts the measurement methods such as spatial measurement and system GMM,and conducts empirical research on the relationship between the scale and efficiency of China's production factor space allocation and the balanced development of regional economy.Then it discusses the mechanism,law and development trend of China's regional economic balance development.The main conclusions of this paper are as follows:(1)In the development of market economy,production factors have spatial agglomeration effects and spatial diffusion effects.In the process of agglomeration and diffusion of production factors,the spatial allocation scale and spatial allocation efficiency of production factors play a vital role in the balanced development of the regional economy.According to Marx's capital theory,capital is the value that can bring surplus value.In the market competition of capital chasing surplus value,the production price is formed,so that the same amount of capital can obtain the same amount of profit.If the profit rate of any department,industry or region is higher than the average level and the economic situation is unbalanced,capital will continue to flow to that department,industry or region,so that the profit of capital is averaged among departments,industries and regions.Then the economy is restored to equilibrium.In the socialist market competition,capital operation also follows the same law.Capital will always flow to areas with high income levels,either quickly or slowly,and will drive the flow of labor and other elements together.It is the flow of production factors such as capital and labor that promotes the balanced development of the regional economy.Through the use of mathematical model derivation,this paper conducts an empirical study on the relationship between the spatial flow scale and allocation efficiency of capital and labor and the balanced development of regional economy,and analyzes the spatial agglomeration effect and diffusion effect of China's production factors and their effects.When the factor yield of a region increases,that is,the efficiency of factor allocation increases,the factors will gather in the region to promote the agglomeration and development of the industry and form the agglomeration effect of the factors.However,when the economy of the region develops to a certain extent,there will be a decline in the factor's rate of return.Therefore,elements such as capital and labor will flow to other regions,forming a spatial diffusion effect of the factors.In the process of spatial agglomeration and diffusion of factors,it will cause an imbalance in economic development between regions.When elements are reasonably and freely flowed in market competition,and factors can achieve high allocation efficiency in various regions,a new balanced development of the regional economy can be achieved at a higher level.This is the mechanism by which factor space allocation affects regional economic balance development.(2)The reason why China's economy has achieved rapid growth in the past 40 years of reform and opening up is closely related to the regional economic unbalanced development strategy and the coordinated development strategy of regional economy that have been implemented by the Chinese government.At the beginning of reform and opening up,on the basis of promoting rural reform,the Chinese government implemented the strategy of opening up and prioritizing development in the eastern coastal areas,so that capital and labor and other production factors gather in the eastern coastal areas of China,forming a developed coastal area in the east.The central and western regions are the "outside" economic geospatial pattern.Since then,in response to various problems brought about by the widening gap in regional economic development,the Chinese government has adopted the strategic measures of coordinated development of regional economy such as "Western Development","Rise of the Central Region" and "Revitalization of the Old Industrial Base in Northeast"since the beginning of this century.It has achieved gratifying results.Through the research on the statistics of the total economic volume of provinces,autonomous regions and municipalities in China from 2000 to 2015,it is found that the absolute gap between the economic aggregates of provinces,autonomous regions and municipalities continues to expand.However,from the relative gap of the total economic volume of provinces,autonomous regions and municipalities in China,the transition from divergence to convergence has appeared since 2006.This transition has the characteristics of accelerating convergence first and then slowing down.By 2013-2015,the relative gap between the economic aggregates of provinces,autonomous regions and municipalities has remained basically stable,indicating that China's regional economy nas begun to enter a balanced development track.(3)China's regional economy has shifted from unbalanced development to balanced development,which is closely related to the scale and efficiency of factor space allocation.Based on the provincial panel data from 2000 to 2015,this paper conducts an empirical study on the relationship between factor space allocation and regional economic balance development.First,from the scale of factor space allocation,the eastern region began to show continuous net capital outflows in 2004 and capital in the central region changed from net outflows to net inflows and increased significantly.In 2006,capital from net outflows to net inflows began in the western region.After 2009,the central and western regions showed a stable net capital inflow,while the eastern region continued to have a net outflow of capital after 2009.In terms of cross-regional mobility of labor,the eastern region showed a continuous large-scale net inflow of labor before 2009,and then its inflow scale declined sharply.After the long-term net labor outflow in the central and western regions,the number of labor outflows in the central region begins to continue to reduce in 2012.By 2015,the outflow and the inflow of labor are basically the same.The number of labor outflows began to decrease in the western region since 2009,and a small net inflow of labor began to appear in 2012.In terms of factor space allocation efficiency,most provinces in the east have higher efficiency in factor allocation.Most provinces in the central and western regions except Anhui,Hubei,Hunan,Yunnan,Sichuan,and Chongqing have slower efficiency improvements.The efficiency values of western provinces such as Qinghai,Gansu,Ningxia,Guizhou have always been at the lowest level.From the perspective of the efficiency of factor space allocation,it has significant direct effect,indirect effect or spatial spillover effect on promoting China's regional economic development,which means that the allocation of factor space has a significant positive effect on the balanced development of China's regional economy.(4)Since the spacial allocation of factor plays a vital role in the balanced development of regional economy,it is necessary to study the main factors affecting the spatial allocation of factors and to improve and optimize the spatial allocation of factors,so as to promote the countermeasures for the balanced development of regional economy.Through the empirical analysis of the main factors affecting China's factor space allocation,this paper believes that the main factors causing the low efficiency of factor space allocation includes the insufficient market competition,the imperfect factor market,the unreasonable industrial structure,the trade barriers between regions.and the improper monopoly and government intervention.However,defining government functions,introducing and utilizing foreign capital,expanding foreign trade,technological innovation and human resource development,and the continuous improvement of financial development level have played a significant role in promoting the optimal allocation of factor space.Therefore,in order to increase the spatial mobility of production factors and optimize the allocation of factor space,we should accelerate the pace of reform and opening up,increase the intensity of factor market reform,correctly define and exert government functions,eliminate regional barriers,and adjust industrial structure.We will accelerate technological innovation and human resource development,strengthen the introduction and utilization of foreign capital,expand foreign trade,strengthen the management of foreign investment,and strengthen the construction of legal systems to promote the balance,coordination,health and sustainable development of China's regional economy.