The Research On The Influence That Labor Migration And Industry Agglomeration Have On Regional Economical Disparity

The regional economic disparity problem has been the topic which is talked about inthe economic growth theory and development economic theory, besides, it is widelyconcerned by the government policy makers of all the world. with the rapid growth of theeconomy, china’s economy and industry layout has appeared agglomeration phenomenonon the space, the income gap among regions is become larger and larger. Based on thebackground of the unbalance regional economic development in China, the article analyzesthe present situation of labor flow, regional economic gap and industry concentrationamong the provinces, and points out that labor flow in the east is higher than the west, theindustry agglomeration in the east has advantage over the west, and the regional gap in theeast is much bigger than the west. Then it discusses whether the labor mobility andindustry concentration is matched, and points out that the barrier of labor migration leadsto expanding the regional economic disparity, the capital’s marginal output variables affectthe regional economic growth. The falling of the capital’s marginal output will narrow thegap in the east, while it affects oppositely in the middle and the west. Lastly it builds theeconometric model to conclude that the labor migration expands the regional economicdisparity, the speed of which is shrinking. By increasing the share of the second industry、per capita retail sales and fixed assets investment of the central and western regions, it canpromote the economic development to achieve the purpose of narrowing the regionaleconomic disparity.