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Research on Convergence of Regional Economic Growth Across Three Provinces in Northeast China

Author: JieZhuo
Tutor: GuGuoFeng
School: Northeast Normal University
Course: Regional Economics
Keywords: Regional Economic Growth Convergence Theil index Northeast
CLC: F127
Type: Master's thesis
Year: 2011
Downloads: 43
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Abstract


An Empirical Study of the theory of economic growth has been the focus of economists, while neo-classical economic theory convergence hypothesis: the per capita output growth and the initial capital-labor ratio a negative relationship between the rate of economic growth in poor areas faster than richer regions, has become a hot spot to explore the economics profession. The experts and scholars for empirical testing in different regions also obtained there exists convergence divergence conclusions. This paper first describes the neoclassical growth theory, explaining the σ convergence, β convergence, \Secondly, the use of Robert · J. Barro and Sala - Iraq - Martin's classic convergence test model, select the 1990-2009 economic data, analyzes and discusses the three northeastern provinces and 36 cities in the presence of their convergence. Finally, the combination of the above empirical study further analyzes produce convergence or divergence factor. Basic conclusions of this study are: first, the three northeastern provinces of economic growth σ convergence and divergence are alternating in 1993-1996 1999-2004 2004 exists between σ convergence, in 1990-1993 and 1996-1999 2004-2009 divergence exists σ. The second from 1990 to 2009 among the three northeastern provinces absolute β convergence of long-term does not exist. The introduction of fixed asset investment rate, population mobility and regional dummies and other control variables regression results show that the three northeastern provinces between 1990-2009 β convergence conditions exist, but because the condition β convergence means that each economy is toward the respective steady convergence, while the steady-state position of each economy there are differences, so in the long run the inequalities between economies will still exist, economic differences will not disappear soon. Third, the use of Theil index decomposition of the Northeast provinces of internal and inter-provincial differences that exist between 1990-2009 in Liaoning, Jilin and Heilongjiang Province, three convergence \This phenomenon has two aspects: First, in each of the three provinces there is a convergence trend in interior provinces. Secondly, the existence of this inter-provincial economic growth in the three provinces asout. Fourth, good regional economic policies a strong impetus to economic growth in the three northeastern provinces, reducing the economic disparities within provinces, but to reduce the effect of inter-provincial differences are not significant. The migration of economic growth for the three northeastern provinces and to reduce economic disparities contribute to lower rates.

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CLC: > Economic > The world economic profiles,economic history,economic geography > China's economy > The local economy
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