The Immiserizing Growth Of Resource-dependent Region: Forming Mechanism And Countermeasures

This paper extends the relative international trade theory to the regional aspect from the angle of resource-dependent regions'participation of trade, mainly focuses on the forming mechanism of the immiserizing growth of the resource-dependent region, then analyzes the features of both international and inter-regional trade of Gansu province basing on its present situation. Some corresponding countermeasures are put forward at last.This paper can be divided into five parts. The first part clarifies the research background and meaning of this paper by analyzing the trade model of different regions in our country and the backward economy situation of the resource-dependent regions, then come to the idea that the immiserizing growth actually exists when the resource-dependent regions took part in the trade. In the second part,the former literatures concerning about the relationship between nature resource and economic development are arranged and some comments are made. In general, the importance of nature resource has experienced a increasingly decline. The immiserizing growth theory clarified the negative effect that nature resource may have on the economy growth from the aspect of a country and literature based on inter-regional trade is still a blank. The third part poses the hypnosis of immiserizing growth of the resource-dependent regions and analyzes its forming mechanism from four aspects of inter-regional terms of trade, which are capital accumulation, industry up-grade and institution weakening. I believe that the immiserizing growth of resource-dependent regional is a vicious circle. The output structure will induce the deterioration of TOT, decline the capability of the local capital accumulation; then the deficit of capital will drag the industry up-grade; finally the resource-dependent regions will find themselves very hard to overcome the heavy dependence on resource exploitation. Also,the institution weakening of these regions will strengthen this vicious circle. In this way, the resource-dependent regions will be locked in a trade interests stagnating situation and economic growth will present the features of high-price, small-benefits and low-speed. Based on this theory, the forth part takes a example of Gansu province, analyzes the immiserizing growth of resource-dependent regions. The result shows out that, the trade structure of Gansu province is obviously dependent on resource. Gansu is experiencing the difficulties of capital accumulation, industry up-grade etc.; the institution weakening is also a big problem. In the last part some countermeasures are made both from technical aspect and institutional aspect, hoping to realize the transform from immiserizing growth to hearth and steady growth.