A Study On The Spillover Effects Of Provincial Economic Growth In China

Economic growth is a nation and region's long-term target. With the development of market economy, the process of regional economic integration in China is speeding up. As a result, a region's economic growth not only depends on inner factors, but also is driven by other region's economic growth. Based on the study of the spillover effects of provincial economic growth, this paper goes deeply into the interactions between provinces, and provides a new view of narrowing the regional gap.Based on the empirical research, this article gets provincial output variable into the expanded Solow Growth Model and measures the spillover effects of provincial growth. Meanwhile, this paper also investigates the spillover effects of every province's economic growth to other provinces and the mutual spillover effects between neighboring provinces. Then we test three probable spillover channels of provincial economic growth:interregional trade, labor migration and technology diffusion. Finally, we do theoretical analysis and empirical testing on the relationship between the spillover effects of provincial economic growth and the regional gap.The results show that:there does exist a noticeable positive spillover effects among the Chinese provinces. After controlling the inter spillover effects, the per capita income between provinces presents conditional convergence trends. This indicates that the income disparity will narrow finally, effected by the spillover effects. In addition, interregional trade and labor mobility are the main spillover channels.The role of technology diffusion is limited. Finally, on the basis of our results, the paper puts forward some suggestions to promote regional harmonious development using the spillover effects.