Analysis On Cities’ Regional Economical Diversity And Convergence Of Zhe Jiang Province

Since the reform and opening-up in1978,Zhejiang Province has obtained the great achievements in economic growth,however,the development is unbalanced,the economic disparity between the cities in Zhejiang continue to widen. With economic development,the unbalance phenomenon of economic development gradually become drawbacks to the economic and social stability of Zhejiang Province. With the implementation of the municipal lead the county system, municipal administrative units gradually become the main management of the county. Considering the various economic indicators,the function of the Prefecture-level cities has been very prominent.It will spur the economic development of the Area when the city itself has a fast development. Obviously, the municipal economy has become a very important regional economic unit. So the paper analysis the trend of the economic disparity of the cities in Zhejiang,study the economic convergence of Zhejiang,and put forward policy ecommendations. In examining the economy disparity of Zhejiang,this paper have used many kinds of methods,such as Extreme deviation,the standard deviation,variation coefficient,the Gini coefficient and Theil coefficient.The results show that,since the reform and opening-up,the absolute difference has been expend largely,and the relative differences rise wavely.The fluctuations of the relative differences is large,and the difference expanded slightly befor1990s.After the1990s,the relative difference has been rising slowly.From the region decomposition of the Theil coefficient and the Gini coefficient we can see that the main reason of the economic disparity is the disparity between different regions.Analysis the result of income decomposition of Gini coefficientresults,we can find that the contribution rate of the secondary industry to Gini coefficient has been larger, and the contribution rate of the tertiary industry rose quickly, and the gap between the two industries is gradually reduced.The contribution rate of the primary industry is lower, but it significantly narrow the economic disparity.By analyzing the convergence of the economic growth of Zhejiang Province,we find that there is no full-time convergence since the reform and opening up.But the trend shows that phased convergence exists.The result of absolute (3convergence analysis shows that the economy of Zhejiang Province convergence weakly.After adding the relevant factors such as the industrial structure Etc.the economic development of the cities in Zhejiang Province exists condition β convergence with the rate of4.97%. The result of validation club convergence shows that only the northern Zhejiang exists club convegence.A lot of factors affect the economic convergence,we find that the factor such as fixed asset investment,industrial structure,human capital Etc.have a positive role in promoting the economy convergence,while the degree of market play the reverse role.Finally, the paper put forward policy recommendations on how to narrow the economic gap between the backward cities and developed cities from the aspects of the provincial government and municipal governments.The provincial governments should improve the institutional environment,establish a unified market; implement Preferential policies to increase investment in backward areas; foster the growth pole of the backward areas to spur the regional economic development; strengthen regional cooperation to achieve the goal of coordinated development of the region.The municipal government can develop it’s economic by speeding up the upgrading of industrial structure, selecting the the reasonable industry as a pillar industry of the region, accelerating the construction of transportation infrastructure to reduce distribution costs, as well as attracting talent people, so as to narrow the economic gap between the cities.