Research On Regional Economic Discrepancy Change And Influential Factors Of Shaanxi Province

A key economic issue is whether poor countries or regions tend to grow faster than rich ones: are there automatic forces that lead to convergence over time in the levels of per capita income and product? This paper is based on basic laws and relevant theories of economic growth, we not only examine the convergence characteristics of cities of Shaanxi, but also the convergence characteristics between Shaanxi and east part of china, analyzing the dynamic evolution process of inequality of Shaanxi's economic growth through statistical and econometric methods, illustrating current situation and characteristics of economic growth of Shaanxi, exploring the formed mechanics and main factors of inequality which occurred in Shaanxi's economic growth, posing some specific measures to narrow the economic growth inequality and promote coordinating development in Shaanxi, therefore we can provide scientific basis for decision and policy-making of local and central government.Our conclusions are as follows(:1)during the year 1989 to 2008, it does not exist absolute convergence between cities in Shaanxi, that is to say, the cities which have higher GDP per capita tend to grow faster than those cities which have lower GDP per capita. The analysis of absolute convergence from the year 1989 to 2008 in Shaanxi is consistent with situation descripted by coefficient of variation of GDP per capita.(2)it existsσconvergence between Shaanxi province and east part of china from 1982 to 1999, 2000 to 2008, and 1982 to 2008, respectively. At the meanwhile, it does not existσconvergence among cities of Shaanxi.(3)After we control the variables of labor growth rate, investment rate, human capital and industrialization level, we find that it exists negative relation between the growth rate of GDP per capita and initial value of GDP per capita, it indicates that it exists obvious conditional convergence among cities in Shaanxi. Meanwhile, the empirical results showed that the variables of investment rate, human capital and industrialization level have positive effort to convergence of GDP per capita in Shaanxi(.4)Before and after western development, it does not exist absolute convergence between Shaanxi and east part of china. When we control these variables of investment rate, population growth rate, human capital and openness, it exists obvious conditional convergence between Shaanxi and east part of china. After western development is implemented, the conditional convergence rate between Shaanxi and east part of china is higher than the rate before western development implemented. In addition, the variables of investment rate, human capital and openness have obvious positive effort to convergence.This paper makes policy suggestions as follows: (1)The undeveloped regions should keep high investment rate under the guidance of market.(2)Promoting the growth of human capital, the undeveloped regions like southern part of Shaanxi province should set up longer development strategy, increasing the input to education from the view of strategy, strengthening popularity of fundamental education.(3)Improving openness, Shaanxi province should abolish trade obstacle and protectionism, promoting the circulation of commodity and growth of factors market.(4)Optimizing industrial structure, the undeveloped regions should speed up the development of industry and tertiary industry while consolidating the fundamental status of agriculture.