Effects of Industrial Relocation on Chinese Regional Economic Growth Disparities: Based on System Dynamics Modeling

The economic growth of China has led to increasing growth disparities between regions. Such disparities are uncontrolled and are severely negative symptoms in the process of economic development. On the basis of system dynamics(SD) modeling and the relationship between industrial relocation and regional economic growth, we construct a model of the interrelationship between the two aforementioned phenomena. The model is an effective and creative exploration for examining effects of industrial relocation on Chinese regional economic growth disparities. The SD model is employed in this study to build an inter-regional labor migration SD model, an inter-regional capital migration SD model, an intra-industry SD model, an intra-regional population SD model, and an intra-regional SD model which are based on realities in labor and capital flow from the view of industrial relocation. VENSIM software is utilized to perform a system simulation based on the data of the eastern, middle, and western regions from 2000 to 2010. Results show that industrial relocation gradually narrows the relative disparity in GDP among the three regions. Moreover, the absolute one is enlarged continuously. The absolute and relative disparities in per capita GDP among eastern, middle, and western regions generally exhibit decreasing trends.

R/S AND WAVELET ANALYSIS ON EVOLUTIONARYPROCESS OF REGIONAL ECONOMIC DISPARITY IN CHINA DURING PAST 50 YEARS

This paper shows the dynamic process of regional disparity of economic development in China in the past 50 years from a new insight by using the rescaled range statistic (R/S) analysis and wavelet analysis of the Theil index sequence with different time scales. The main conclusions are: 1) The regional disparity of economic development in China, including the inter-provincial disparity, inter-regional disparity and intra-regional disparity, has existed for many years. Theil index by the comparative price has revealed the true trend for comparative disparity of regional economic development from 1952 to 2000. 2) Decomposition of Theil index indicates that the dynamic trend of comparative inter-provincial disparity in the coastal region is in line with dynamic trend of inter-provincial disparity in the whole China. 3) The R/S analysis results tell us that during 1966-1978, the Hurst exponent H=0.504 approximate to 0.5, which indicates that in that period the evolution of comparative inter-provincial disparity of economic development showed a random characteristic, and in the other periods, i.e. 1952-1965, 1979-1990 and 1991-2000, the Hurst exponent H>0.5, which indicates that in those periods the evolution of the comparative inter-provincial disparity of economic development in China had a long-enduring characteristic. 4) By using wavelet analysis at different time scale, we arrived at a conclusion that the evolutionary process of the disparity of economic development of China is not a simple inverted U shape but a compound of several U shapes. The result tells us that the evolutionary plot of inter-provincial disparity in China follows the inverted U on the whole at the higher scale, 24 ( 16 years). That is to say, the disparity tends to rise in the first stage of economic development, and fall slowly over the peak in the second stage of economic development. However, if we shorten the time scale to 23 ( 8 years), then a link of several U shapes will appear.

Spatial Analysis of the Evolvement of Urban and Rural Economic Disparity in Yunnan Province,China

The per capita disposable income of urban households and the per capita net income of rural households in Yunnan Province are selected as the variable indices.Data are from the Yunnan Statistical Yearbook and the Yunnan Statistical Yearbook.Theil index and RHL value are used to carry out quantitative research on the occurrence,development and change of urban and rural economic disparity in Yunnan Province,China.Regression analysis on the evolvement trend of urban and rural economic disparity and spatial analysis on the convergence and divergence of urban and rural disparity caused by economic growth in Yunnan Province are carried out.Result shows that cities in Yunnan Province show a downward convergence;while rural areas show a downward divergence in the years 1978-2007,causing the economic disparity between urban and rural areas.Therefore,urban and rural disparity increases in Yunnan Province and the development of rural areas lags far behind the development of urban areas.Urban and rural economic disparity in Yunnan Province shows an inverted "U" shape of Kuznets Curve.In order to promote the coordinated development of urban and rural economy,suggestions are put forward,such as adopting the unbalanced development strategy,accelerating the overall economic development,promoting the development of small and medium-sized cities,enhancing the integration of urban and rural economics,appropriately supporting rural areas under poverty,and fully exerting the comparative advantage.

Identifi cation and decomposition of regional economic disparity for the west coast of Taiwan Strait of China

Regional economic disparity is a hot issue in the development of society and economy. As the conjunct of the Yangtze River Delta and the Pearl River Delta and the frontier to Taiwan, the west coast of the Taiwan Strait （WCS） is of great social and political significance. The paper defines the connotation of the WCS, decomposed the regional economic disparity by using weighted coefficient of variation and Theil coefficient, and explores the industrial and regional source of the regional economic disparity of the WCS. The analysis results show that： （1） the WCS has important political, economic and military position, so it＇s better to regard it to be comprehensive region, not just refer to Fujian Province; （2）from the industrial decomposition of weighted variation coefficient, the influence o.f the primary industry was tiny; conversely, the development inequity of the secondary and the tertiary, indusoy was the main source of regional economic disparity. Their contribution has had the converse trend and the secondary contribution has gone beyond the tertiary since 2003; （3）from the regional decomposition of Theil coefficient, the regional economic disparity mainly came from inter-area inequity of 4 areas. Moreover, the inner economic disparity mainly drove by Fujian, suggesting that the urban development inequity in Fujian Province was comparatively outstanding.

Are Central and Western Chinese Provinces Catching up with the East？ An Empirical Analysis of Convergence Processes across China

Since the Reform and Opening-up policy had been implemented in 1978, China's Mainland has experienced significant economic growth, with GDP rising on an annual average of about 10%. However, this growth miracle was far from being evenly distributed across space. It is, therefore, the aim of this paper to study the evolution of spatial disparities in economic development across the country between 1993 and 2012, a period which is characterized by all provinces having access to international markets and being open for international investors. We seek to answer the question of whether Central and Western Chinese provinces were catching up with the East. We define ＇catching up＇ as a growing similarity among spatial units. Convergence processes might manifest in four dimensions, including （1） the spatial allocation of employment, value added generation and the fixed capital stock, （2） forms of technical change, （3） productivity patterns, and （4） income distribution. Results show that persistent phases of convergence appeared. However, in some cases the catching up of China＇s less developed parts with the flourishing East was limited to only a few Western and Central Chinese provinces. A high degree of path-dependency in economic development prevented catching up from taking place in a more uniform manner.