Regional Disparities with Economic Growth in China:Measurement from the Perspective of Trade Openness
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| Title | Regional Disparities with Economic Growth in China:Measurement from the Perspective of Trade Openness
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| Author | Chen Jiyong and Liang Zhu |
| Organization | Economics and Management School, Wuhan University; Sun Yat-sen University |
| Email | cjyhubei@163.com；liangzhu10@163.com |
| Key Words | Trade Openness; Regional Disparity; Propensity Score Matching (PSM) |
| Abstract | Since the 1990s, regional disparities have continued to widen in China, trade openness is an important factor inducing regional disparities in China. This paper uses propensity score matching to evaluate the impact of trade openness on the provincial real output per capita. The study finds that in the 1981-2007, in terms of all the sample provinces, GDP per capita in the provinces with the higher degree of trade openness is on average higher 125-197 Yuan than that in the provinces with the lower degree of trade openness, 125-197 Yuan accounting for the 6.1% -9.6% of sample average real GDP per capita. Chosen randomly from the provinces of higher trade openness, GDP per capita in the province is higher 856.9-900 Yuan than that of this province assumed to be the lower trade openness, 856.9-900 Yuan accounting for 39% -43% of sample average of real GDP per capita. Measures such as retaining industries transfer from the east costal provinces, reducing the degree of dependence on the external foreign market and enlarge the domestic consumption, improving the infrastructure can make the inland provinces increase and intensify their trade, which helps reduce the regional disparities. |
| Serial Number | WP269 |
| Time | 2012-06-12 |
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