China's Regional Disparity In The Perspective Of New Economic Geography

There has been rapid development of Chinese economy since the reform and opening-up in 1978. Alongside fast economic growth of China, the region's economic growth presents significant differences. Regional disparity, especially the gap among the east, middle and west, is unceasingly enlarging. In the background of building a socialist harmonious society, the existence and the expansion of regional disparity will restricts the building of harmonious society. Thus it is of great significance to research regional disparity.The mainstream economics takes the convergence hypothesis based on the neoclassical economic growth theory as the frame to analyze regional disparity, but when they doing the research, they are focus on the relationship with initial level of variables and final growth, then the progress of economic growth is thought as black box, the explanation of internal mechanism on regional disparity is not clear. This thesis tries to discuss regional disparity in the perspective of new economic geography (NEG).Since the innovative literature "Increasing Returns and Economic Geography" by Krugman has been published, NEG has decade development history, it has been praised as the fourth wave of increasing returns and imperfect competition revolution. The core-periphery model is the most representative general equilibrium model of NEG, it illustrates that in two symmetrically region of sane original condition, one region in the self-strengthen progress, implements economic agglomeration as rich core region, the other becomes poor peripheral region.This thesis considers, regional disparity in China mostly incarnate at the gap between eastern area and mid-western area, the formation of the gap is a core-peripheral progress: the population of eastern coastal area is very large, additionally the geography advantage is very distinctness, eastern consume market capability is bigger than mid-western, its superiority on developing manufacture is better than mid-western. At the beginning of reform and opening-up, by right of central government's biased regional policies, eastern economy especially manufacture is developing fast. Under the scale economy of industry, its "backward linkage" makes capital and other resources in mid-western area influx to eastern area. In the progress of self-intensify, the superiority of eastern manufacture becomes building up, the gap between eastern area and mid-western area is becoming greater, and it evolves as core-peripheral structure in the end. According to NEG, the relationship of regional disparity and transaction cost...