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Study on the Dynamics of the Influence of Globalization over Regional Economic Gaps and Apolicy Mechanism of Macro-Economic Regulation

Author: HuangXueQin
Tutor: ZhangXiaoLin
School: Nanjing Normal University
Course: Human geography
Keywords: Globalization Jiangsu Province Regional economic differences Coordinated regional economic development Regional economic macro-control Basic public service equalization Local Industrial Clusters
CLC: F12711.111
Type: PhD thesis
Year: 2008
Downloads: 807
Quote: 3
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Abstract


China’s WTO entry indicated that Chinese economy entered a new era of growth. The globalization of economic factors and the marketization of Chinese economic mechanism not only accelerate china’s economic growth, but also prick up the spatial differentiation of Chinese economy. As one of the leading provinces of China’s Reform and Opening up, Jiangsu’s regional economic gaps are typical in China. Moreover, its regional economic gaps are wider than China’s average. Since the beginning of mis century, although the Jiangsu provincial government paid more attention to the economic regulations, it fails to continue the benign trend that the regional economic gaps in Jiangsu had been narrowing down during the middle and late 1990s. The regional economic gaps in Jiangsu has widened sharply. Therefore, the ways of thinking and methods of regulations over Jiangsu’s regional economy have to be adjusted in the era of globalization.This article first reviews the past research achievements, and then it gives priority to the research on the impact of globalization over both the flux of productive factors and its directions and thus the regional economic growth. Based on such positive study, it theoretically analyzes the double impacts of globalization over regional disparity and the relationship between the globalization course and the regional economic gaps in Jiangsu from a joint perspective of economic geography and economics. This article also shows the internal dynamics of the influence of globalization over Jiangsu’s regional economic gaps and the directions of the flux of productive factors in Jiangsu and the trend of the change of Jiangsu’s regional economic gaps. Moreover, following the way from issues to solutions, this article also analyzes the space of the regulation over economy by Jiangsu provincial government, the triple tasks of Jiangsu’s regional economic development and then puts forward a policy mechanism for Jiangu provincial government’s macro-economic regulation in the era of globalization.Main conclusions of this dissertation:1 .Globalization has double impacts over regional disparity. Globalization has convergence effects on regions in or tends to the same technological circle. Globalization has divergence effects on regions in or tends to the different technological circles.2.Globalization exerts much influence over Jiangsu’s regional economic disparity. The spatial differentiation of globalization in Jiangsu can account for60- 70% of the cases of Jiangsu’s regional economic gaps.3.Globalization influences Jiangsu’s regional economic disparity by widening the regional gaps of allocative efficiency of productive factors. It is reasonable to aid lag-behind regions considering the spatial differentiation of globalization.4. Jiangsu is at the metaphase of industrialization. Given the impact of globalization and market mechanism, the productive factors will further centralize in Southern Jiangsu and coastal areas so that the North-South economic gap will be widening. And worse, the once effective ways of methods of regulations over Jiangsu’s regional economy has become difficult to match our needs and should be adjusted.5.In this era of globalization, Jiangsu’s (and also China’s) economic regulations are not only restricted by the WTO rules, but also under the pressure of triple tasks of narrowing both the gap between developed countries and this region, and gaps within this region. The provincial government can seek the balance between economic efficiency and social justice only by indirect regulations through allocating limited public resources based on the principle of equalization of basic public services among regions.6.In the era of globalization, the regional economic coordination and development, per se, mean that every region makes full play of their comparative advantages, digs up their potential advantages, and foster their competitive advantage. Industrial centralization of with regional characteristics will be the guiding principle of the regional economic coordination and development. Moreover, the development of local industrial clusters with regional characteristics will be the key for regions to achieve their economic coordination and development.

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