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A STUDY ON REGIONAL ECONOMIC GROWTH CONVERGENCE AND DIVERGENCE IN CHINA |
QIN Cheng-lin |
College of Environment and Planning, Henan University, Kaifeng 475001, China |
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Abstract By positive analysis on the process of regional economic growth in China since the opening and reform policies putting into practice, it is found that there was σ convergence among regions from 1978 to 1990, and there was a tendency of divergence for the regional economic growth from 1990 to 1999. There was β convergence with a rate of 2.2 percent per year among regions from 1978 to 1990. However, the β index was positive from 1990 to 1999. The result shows that there was no β convergence, but divergence for the regional economic growth was obvious in China during this period. As for the whole situation, there was β convergence among regions in China from 1978 to 1999, but the rate of convergence was small and just 0.9%. There was obviously club convergence among regions during the same period. There were two kinds of convergence clubs. One kind of the clubs was consisted of regions with higher levels of economic development which included Shanghai, Beijing, Tian-jin, Liaoning, Hebei, Shandong, Jiansu, Zhejiang, Fujian and Guangdong. Another kind of clubs was consisted of regions with lower levels of economic development. From 1978 to 1990, the factors resulting in the σ convergence were that the members of regional group with middle-high relative GDP per capita increased, the economic development levels of regional group with high relative GDP per capita(exclude Guangdong) decreased, and the economic development levels of the most members of regional groups with middle-low relative GDP per capita or low relative GDP per capita increased. From 1990 to 1999, the factor resulting in divergence were that the members and economic development levels of the regional group with high relative GDP per capita were both increased, the members of the regional group with low relative GDP per capita increased, but the economic development levels of them decreased. By the end of twenty century, there were distinctly polarizing phenomenon among regions in China. Therefore, on the one hand China should implement the West development strategy to control the enlarging tendency of regional economic diversities; on the other hand it should take pertinent and regional controlling measures in order to promote effectively the cooperative developments of regional economy according to the changed patterns of regional economy.
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Received: 17 March 2003
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