Regional economies and potentials of Northeast China

Abstract

PurposeThe purpose of this paper is to focus on the regional development of Northeast China and recommend certain alternatives to revive its economies.Design/methodology/approachThe paper reviews and analyses the transitional situations of the major three constituent provinces of Northeast China, namely Liaoning, Jilin and Heilongjiang during the economic reform.FindingsThe paper finds that, in the initial couple of decades since the foundation of The People's Republic of China, a significant part of the northeast economy mirrored the economic model of the USSR, which ineffectively reacted to market economy. The transitional economy reformed the weaknesses of the economic systems of Northeast China but led to regional economic issues in unemployment, productivity, non‐recurrent resources, and duplicated investments.Practical implicationsWith the state's northeast revitalization policy and the reform measures of provincial governments, the economic situation of the region has progressively improved over the years, reflected in a higher increase rate in added value of industrial output, international trade and investments. However, the northeast still has shortfalls compared with other economic poles in China.Originality/valueThe paper concludes that the Northeast should strengthen its regional comparative advantages and adopt industrial cluster development for its revival; and it is presumed that regional international trade and foreign direct investments will be further advanced through the more open policies implemented in recent years.