A Study on Social Economy Gap and Factors between Regions in China

Purpose: This study investigated convergence of economic development at each region of 28 provinces, self-control areas and direct control regions in China from 1978 to 2011 based on new classic growth theory and to examine factors of economic gap and convergence of local economy for 34 years. Research design, data, and methodology: Cross sectional analysis, penal unit root test, and panel regression were used. The study evaluated convergence of income between regions to rate policy and to help local economy. Chapter 2 examined Gini coefficient, coefficient of variation, β convergence and probability forecast convergence. Chapter 3 included material and variation of study on gap factors between regions. Chapter 4 investigated influence of economic gap between regions. Chapter 5 had summary and conclusion. Results: Per capita GRDP material was used to examine Gini coefficient, coefficient of variation, β convergence and probability forecast convergence. Local economy had convergence depending upon concept. Per capita GRDP gap was used to investigate panel. Conclusions: Difference of governmental finance policy, physical asset, technical development, foreign trade and industrial structure had influence upon economic gap from 1985 to 2011 difference of finance policy, physical asset, foreign trade and industrial structure had great influence upon economic gap between regions.