China's Regional Economic Growth Convergence Analysis Of The Differences

Neoclassical economic growth model considers that the development of economy will ultimately show a stable state because of the decreasing trend of the marginal output of capital in a closed economy. (Solow 1956), and the stable state is that the output per capita remains unchanged. When the economy is in a stable condition, the economic growth rate will be zero because the output per capita remains unchanged.The process of economic trends steady state is named as economic convergence.If the economic is convergent, in this process, the backward economy will have higher growth rate than that of the development economy because of the higher marginal output of capital. So the backward economy will catch up with the development economy until they reach their steady state. The economic convergence theory does not only account for the discussion of economic trends, but also are used to analyze the reasons of different regional economic growth in an important manner.Adopted different methods and different points of view, researchers usually reached different conclusions, which were controversial to the differences of regional economy in China, and the researches were mostly focus on the three belts (the East, the Middle and the West) and the disparities between provinces, fewer researchers were focus on the convergence differences of regional economy in Chinese 30 provinces by the cluster analysis.Looking from the research object, there are two main lines from the beginning to the end. First of all, the paper introduces the cluster analysis to divide the regional structure by using SPSS11.0 and Eviews3.0 covariance software and reach a new regional structure. Secondly, according to the convergence of Economic Growth theory, practical research is made on the economic growth period and region in China. It strongly proves the convergence of regional economic growth in China from 1978 to 2004. Based on the practical analysis conclusion, it gives the proposals about reducing regional economic growth disparity. Looking from the writing methods, a combination of methods of historical time series and horizontal transaction is adopted in analyzing.The main conclusion of this paper is as follows:First, the cluster analysis of the convergence of regional economic growth disparity reached a new regional structure by the cluster analysis. The first region included: Beijing, Tianjin, Liaoning, Shanghai, Jiangsu, Zhejiang, Fujian, Guangdong and Chongqing; The second region included: Heilongjiang, Shanxin, Neimenggu, Jilin, Shandong, Hebek Hubek Hunan, Hainan, Sichuan, Shaanxi and Ningxia; The third region included: Anhui, Jiangxi, Henan, Guangxk Guizhou, Gansu, Qinghai and Xinjiang. Then, used sconvergence and βconvergence based on the neoclassical economic growth model to analyze the three regions by periods. From 1978 to 1990s convergence happened obviously in the three regions; But from 1990 to 2004s convergence happened. From 1978 to 2004 Bconvergence happened. Though Bconvergence seemed to be week in the second and the third region, it cannot affect the whole conclusion. From the Bconvergence of the whole country, just the period...