Abstract
The regional disparity of China is increasingly serious and is forming a blocking effect on economic development. What factors have led to the China's regional growth differences and regional disparities? From the perspective of ownership structure, we examine the historical factors’ impact on the regional growth trajectory. We find that, in the process of transition, the regional ownership structure plays a key role in the regional economic growth. Regions with high proportion of initial state-owned economy may lock into “historical lock-in effect”, but that regions with low proportion of initial state-owned economy may grow rapidly. There will be a polarization effect among regional competition and lead to widening regional disparities. Using China's provincial data (1985-2008), we find that the higher the proportion of initial state-owned economy, the lower the average growth rate of subsequent years. Changes in ownership structure have a positive effect on economic growth , the decreasing of state-owned economy proportion can promote regional economic growth significantly. This chapter points out that inter-regional “economic convergence” need “the convergence of the ownership structure”. High proportion of state-owned economy in middle and west regions are both “disadvantage” and “advantage”, we can change “disadvantage” into “advantage” through changes in ownership structure and achieve economic catch up.
Published Version
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