摘要
Reform and opening up has made China’s economy develop faster than ever. But it has not succeeded in changing the regional disparity in China. In this article, we establish a model factor input called the "lock-in effect" and analyze the channel of the lock-in effect and how it influences the regional economy. On the analyses of thirty provinces’ panel data in China from 1990 to 2005, we find that the lock-in effect of factor inputs further exacerbates the developmental imbalance among regions.
Reform and opening up has made China’s economy develop faster than ever. But it has not succeeded in changing the regional disparity in China. In this article, we establish a model factor input called the 'lock-in effect' and analyze the channel of the lock-in effect and how it influences the regional economy. On the analyses of thirty provinces’ panel data in China from 1990 to 2005, we find that the lock-in effect of factor inputs further exacerbates the developmental imbalance among regions.
