Northwest Regional Specialization Model Study

Sustainable development as basic concepts of modern development economics has been gradually to reach a consensus in the academic community. At the same time, the Scientific Outlook on Development has also become China's core idea to guide future economic development. The increasing of inter-regional economic disparities are becoming the major obstacles that State build harmonious society in the new century.The traditional theory of relatively comparative superiority say that, as long as the regional produce and export their own products have comparative superiority, there will be able to obtain the benefits, the market will adjust the allocation of resources spontaneously, promote the concentration of superior industry, and eventually realize the coordinated development of all regions. But the reality in China, also giving full play to their advantages in resources, the economic development of western region has lagged behind the developed regions in the east. Because of the high similarity of internal industrial structure, the five northwestern provinces are being gradually marginalized in the National system of division.Comprehensive study the discussion on the division from the classical economics to Emerging classical economic, we believe that promote the division level and improve the pattern of regional division is the only way for economic development of the northwest region. We use a model of new economic geography to analyze how various factors affect the division pattern and that process of change, found that comparative superiority, economies of scale and transaction costs are likely have an impact on the inter-regional trade structure, and thinking the action of the latter two, the industry's distribution might not necessarily be in line with relatively comparative superiority theory.In part of empirical analysis, we analyzed the position of division in the country of five northwestern provinces. After the founding of the PRC, five northwestern provinces to establish a supply of energy and raw materials position, and such status has been enhanced by the law of regional division changes in self-accumulation mode and a series of preferential policies, resulting in these areas can't upgrade the industrial structure. Based on regional interests, local governments choose some policies about leading industries option and trade protection, leading to similarity of inter-regional industrial structure with non-normal and high transaction costs. Under the existing conditions that the northwest region lack of capital and qualified personnel, these policies will distort allocation of resources, not help to healthy development of the economy.Finally, on the one hand the northwest region should strengthen vertical division of labor with the developed areas in east, on the other hand, also should strengthen horizontal division of labor in northwest region, so that promote regional economic growth by improve the pattern of regional division. However, the current division of labor pattern can't be regulated by the market, the state macro-control policies will play an important role.