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Analysis of Influential Factors and Spillover Effect on the Regional Economic Disparity in China

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Abstract

Since the reform and opening-up in 1978, the regional economy in China has implemented regional policies in order to develop the eastern, central, and western regions in turn. However, with the economic development of the eastern coastal areas, the development disparity between the coastal areas and the inland areas began to expand rapidly. This chapter summarizes the evolution process of regional economic development, and through qualitative analysis, the evolution trend of regional economic disparities is examined on the basis of various statistical scales. Using panel data in 31 provinces of China for 1990–2016 years to establish a measurement model, the influencing factors of regional economic disparities are empirically analyzed. Combined with the two-time dividing points in 2000 and 2008, we verify the effect of the spillover effect of the eastern region’s economic growth on the regional economic disparity.

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Notes

  1. 1.

    The Guangdong province, at that time, also included the present Hainan, which was independent from Guangdong in the province of Hainan in 1988.

  2. 2.

    At that time, Chongqing was also affiliated to Sichuan. In 1997, it was formally upgraded to a municipality directly under the central government, and it was independent from Sichuan.

  3. 3.

    The eastern coastal regions are different from those in the East.

  4. 4.

    From north to south, it is Dalian, Qinhuangdao, Tianjin, Yantai,Qingdao, Lianyungang, Nantong, Shanghai, Wenzhou, Ningbo, Fuzhou, Guangzhou, Zhanjiang, and Beihai.

  5. 5.

    According to “China Statistical Yearbook 2017”.

  6. 6.

    It is from Wang Zheng’s “8 years of West Development: the fastest growing economy and the most benefit of the people” http://www.china.com.cn/aboutchina/txt/2008-10/14/content_16608647.htm. 2008.10.14.

  7. 7.

    Calculated according to the annual statistical yearbook data.

  8. 8.

    China’s economic growth rate and inflation rate have risen significantly, and the nominal gap can reflect the change in the rate of inflation.

  9. 9.

    Theil index is the important index measuring the degree of inequality of income. In all areas, the income share is calculated with the weight of the population on the income share compared with the population share. Here, if the income share of all regions is equal to the population share, the value of the Theil index is 0, and it is completely equal. The higher the value, the higher the unequal degree. According to China’s three major regional division methods, we can get the regional disparity between the national overall (T) = the interregional disparity (T1) + the intraregional disparity (T2).

  10. 10.

    According to the data of the provinces, the interregional disparity is calculated based on the data of provinces. The intraregional disparity is the disparity between the provinces in the region, and the intraregional disparity is the weighted average of share in each region.

  11. 11.

    The selection of the fixed effect model is the result of Hausman Test. Individual fixed effect model and individual time fixed effect model including the fixed effect model, in the 5% level of significance, through the F Test should reject the null hypothesis, establish individual time fixed effect model. Therefore, the choice of the individual fixed effect model is the result of accepting the original hypothesis.

  12. 12.

    In the aspect of city system adjustment, the government’s policy orientation was the focus of development to promote the development of small towns, big city limits, reflected in the city the population scale and the household registration system, “12th Five-Year Plan” proposed: Megacities should control population size rationally. Mega and medium-sized cities should strengthen and improve population management and continue to play an important role in attracting foreign population. Small and medium-sized cities and small towns should relax their settlement conditions according to actual conditions.

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Correspondence to Na Wang .

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Wang, N. (2018). Analysis of Influential Factors and Spillover Effect on the Regional Economic Disparity in China. In: Ishikawa, T. (eds) Locational Analysis of Firms’ Activities from a Strategic Perspective. Springer, Singapore. https://doi.org/10.1007/978-981-13-1684-5_11

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