Analysis Of The Evolution Of China's Regional Economic Differences

Since reform and opening up in 1978,China's economy is developing at a high speed and at the same time exposing the problem of regional economic disparities.Based on the two facts observed: firstly,the central government has continuously increased its transfer payments;secondly,the scale of inter-provincial trade has been increasing,and it has greatly exceeded international trade.In this background,this paper studies the effects of two factors,transfer payments and inter-provincial outflow,on regional economic disparities.Firstly,the paper calculates the evolution trend of regional economic disparities.This paper selected Per Capita GDP in 31 provinces and cities in China from 2000 to2015 as variables.The results were obtained by the Gini coefficient and Theil index.Secondly,the paper analyzes the effects of transfer payments and inter-provincial outflow on regional economic disparities,including theoretical and empirical analysis.The theoretical part analyzes the route of the transfer payment and the regional economic difference.The theoretical part analyzes the influence path of transfer payments and inter-provincial outflow on regional economic disparities;the empirical part analyzes the influence of two factors of transfer payment and inter-provincial outflow on regional economic differences through establishing the spatial econometric models.Based on spatial econometric equation and the decomposition method,the contribution of various factors to regional economic disparities is calculated.By empirical analysis,this paper draws the following conclusions.From 2000 to2015,regional economic differences were large,but gradually narrowed.Because of the restraint of transfer payment,it is not conducive to narrowing regional economic disparities.Inter-provincial outflow promotes economic growth in the central and western regions.That is beneficial to narrowing regional economic disparities.From 2000-2015,the investment of fixed assets has the greatest contribution to regional economic disparities,followed by the inter-provincial outflow and the industrial structure.And then the relevant measures to reduce the differences are put forward.Continue to promote economic growth in the East in order to play its driving role;control transfer payment in central and western regions,stimulate its own economic growth power by transfer payment;pay attention to the disparities between three regions and give play to the effects of regional radiation driving;improve the environment in the central and western regions continuously;adjust and optimize the industrial structure of backward areas,and exert regional advantages according to local conditions.