Regional Economic Development Cycle Cumulative Cause And Effect Based On The Panel Data

In the process of regional economic development, why some areas acihivesignificant progress due to certain factors; why some areas develop in the oppositedirection because of some factors. This paper selects China's29provinces' panel datafrom1952to2008, and establishes the regional development panel data model. In thispaper, the form of model is selected by likelihood ratio test and Hausman test, theresults show that early stage and late stage model should be the fixed effectmodel,then the model is tested by multiplelinear, heteroscedastic,serial correlationand cross-section correlation, finally the empirical analysis is proceeded by thecorrelation of capital growth rate, investment growth rate and provinces' individualeffects. The empirical result shows that the regional economic development cyclecumulative cause and effect is exist in our country.In this paper, first the regional economic growth, regional economic development,regional development and other related concepts are defined, summarizes the relatedtheory of panel data model.Then, build a panel data model of regional economic development, and the modelis divided into early stage model and late stage model with the reform and opening-upas a boundary.Once again, according to the construction of the regional economic developmentmodel for panel data regression analysis, the model is tested by multiplelinear,heteroscedastic,serial correlation and cross-section correlation, and the empiricalanalysis is proceeded by the correlation of capital growth rate, investment growth rateand provinces' individual effects.Finally, based on the empirical results in this paper expounded in China for thecentral government and local government enlightenments, we put forward relativeprospect.