An Analysis On The Convergence Of Economic Disparities And Its Influnencing Factors In Jiangsu Province

AS the object of this paper, the regional economic disparities of JIANGSU Province and its impacting factors are studied. Through the basis statistical analysis, the paper gets the basic situation of regional economic differences in1978-2008, and then from the point of convergence, the paper studies the long-term trend of differences and their factors.On the basis of neoclassical economic growth theory, this paper analyzes the convergence of the gaps of regional economic. Different from previous studies, there are: First, the Nahar-Inder time series method is introduced to test σ convergence and their model is modified; Second, after discussing that the usage of cross-section data model method has shortcomings in estimating the Barro-Sala equation but the panel data model can overcome that, the paper adopts the panel data model and by the use of the practical data, it finds that the cycle set in the panel data model doesn’t influence the convergence result.For the specific objects, this paper separately studies the GDP per capita and t he per-capita net income of rural residents of thirteen regions in JIANGSU Province. Through the analysis, the results show that:First, disparities of the GDP per capita in thirteen regions don’t exist in the absolute convergence but obvious conditional convergence. Fatherly reviewing the possible impacting factors, it finds that paid-in f oreign capital and human capital decrease the disparities, the export amount weakly affects the decrease, marketing degree nearly has no effect on decreasing, but in con tradiction with the theory, unexpectedly the physical capital and industrialization leve1enlarge the gap of the GDP per capita and this is what can’t be explained. Secon d, different from the GDP percapita, the gap of per-capita net income of rural resid ents is a little large and even has the tiny β-convergence. Further more, on the ba sis of unchanged resource endowment, twenty-five years later the disparities will pre sent the σ-convergence. By step, through the analysis of Granger Causality Test an d Impulse Response Function, the gap of per-capita net income of rural residents ha s relation with the economic growth in JIANGSU Province and the gap has a prom otive enduring effect on the economic growth, but the latter slightly enlarges the dis parities.In the end, this paper summarizes the conclusions and proposes some according ideas.