Agglomeration and balance: the evolution patterns for regional economic divergence in the pearl river delta area

Abstract

This study analysed the differences in the process of regional economic development and revealed the dynamic imbalance mechanism of regional economic development in Pearl River Delta (PRD). Based on the statistical yearbook of PRD 1978-2018 GDP and per capita disposable income (PCDI) data, using standard deviation, Gini index, range rate and clustering analysis methods, we analysed regional inequalities to the evolution dating back to nearly 40 years in the PRD. The cross-sectional data showed that the relative difference is stable and the absolute has always been rising in the evolution of the difference in GDP of PRD. However, in terms of PCDI, the relative difference shows a shrinking trend on the whole. Furthermore, the cluster analysis indicated that with the construction of the PRD Metropolitan Areas, the economic development is concentrated in the core cities. However, the PCDI between regions is converge. We suggested that the three major metropolitan areas should further expand and radiate outward to achieve the overall coordinated development of PRD. At the same time, less developed regions should not be afraid of the concentration of production factors in core cities. With the free flow of production factors, the gap between regions has actually narrowed.