Study On The Regional Economic Disparity In Wuhan City Circle

After the reform and opening up, China adopted the unbalanced regional development strategies. At first, China prioritized to develop the eastern region, and then exploited the west and the northeast, the economy of central region was into a state of collapse. For narrowing the regional gap and coordinating the regional development, the state decided to implement the strategy of central rise.Wuhan city circle was founded in2004. Now its economy is developing rapidly and it has been the most powerful and most alive urban agglomeration in the central region, based on a sound economic basis, relatively complete industrial system, superior position and intensive human resources. Wuhan city circle will lead the economic rise of central region. Although its overall economic develops steadily, there is an obvious development gap in the internal nine cities.This paper studies on the economy of nine cities in Wuhan city circle with the three methods of the qualitative and quantitative analysis, the static and dynamic research and the comprehensive comparison.And it makes a system research on the present situation of the regional economic disparity, its evolving process, the cause of formation and the countermeasures to solve the problem.The results are as follows:First of all, this article examines the economic disparity of Wuhan city circle by two indexes of per capita GDP and income. The single index calculation results show that the regional economic differences of Wuhan city circle are increasing, which are the same to the consequence of the multiple indexes; The second industry plays the most influential effect in the size and changes of regional economic differences in Wuhan city circle by decomposing Geordie coefficient. Meanwhile, the influence of the third industry is smaller and the first industry is the minimum, and the contribution of the first industry has been smaller and smaller. The result of decomposing the Theil index devotes that the economic difference between the center city and its surrounding is the decisive factor of overall economic disparity; The economic differences among the nine cities are significant and beyond the reasonable scope. It is necessary to control the regional economic disparity for it has affected the economic development of the whole city circle.Secondly, there are a variety of comprehensive factors leading to regional economic disparity of Wuhan city circle, such as the differences in development foundation which are caused by the natural basis, location conditions, economic bases and industrial structure, the diversities in the investment of production factors which include material capital and human capital, and the disparities in the level of nine cities’economic reform and opening up.At last, regional harmonious development is the effective way to narrow the regional economic disparity of Wuhan city circle. The coordinated development insists that all the areas play the unbalanced development by using their comparative advantages to achieve the goals of common development and mutual prosperity. Firstly, we can adjust the industrial structure according to the resources endowment and location; Secondly, it is necessary to increase the investment in the infrastructure and the human capital of backward areas; Thirdly, we will continue to expand the trade to improve the overall level of foreign trade and economic cooperation; Fourthly, it needs to establish and improve the system to guarantee the economic coordinated development of Wuhan city circle.