Research On County Economic Convergence In Zhejiang Province

With the assumption of the law of diminishing marginal efficiency of capital, New-ClassicalTheory of Economic Growth pointed out that developing economies had relatively high growthrates; while developed economies had relatively low growth rates. Since the1990s, domestic andoverseas economists have done plentiful empirical research on the convergence of countries andregions,but the research on county economic convergence was opposite less.Based on previous research, using the58counties’ per capita GDP date from1978to2010and56counties’ rural per capita net income data from1988to2010,this article analyzed the issueof regional economic convergence in Zhejiang province. The empirical conclusions are:1978-2010, the per capita GDP growth of58counties, in general, did not exist theαconvergence andabsoluteβconvergence, and in1992-2010, it existed the absoluteβdivergence, the divergencerate was1.56%.1988-2010, rural per capita net income growth of56counties, in general,existed theαconvergence and absoluteβconvergence, and the convergence rates of1988-2010and1988-2002were2.05%and3.8%respectively.1978-2010, per capita GDP growth amongthree gradients did not exist club convergence, but between1978to1990,the second gradientexisted club convergence; club convergence of rural per capita net income showed that, threegradients did not exist club convergence,but between1988to2000, the first gradient regions ofZhejiang did exist the club convergence.Through the analysis of the role individual factors on economic growth and multipleregression analysis of the convergence in the county, found that material capital, industrializationplayed a positive role in promoting the convergence of economic growth in the county, but thefinancial expenditure tended to dampen the convergence.Finally,based on the conclusions putforward three suggestions.