The Difference of Outward-Oriented Economy in Six Provinces of Central China Based on the Theil Index

Abstract

Six provinces in the central part of China are the important economic hinterland of our country. With the first development of the eastern coastal areas and the strategy of developing the West and revitalizing the northeast, the central area’s economy has gradually collapsed and the outward oriented economy has also collapsed. In this paper, we use modified Theil index to analysis the degree of the outward-oriented economy difference in six provinces and the difference between inter regional and extra regional differences of total export-import volume and actual utilization of foreign capital. It is concluded that the difference of outward-oriented economy in these six provinces of central China is obvious, but the overall difference is getting smaller and the difference of the actual utilization of foreign capital is greater than the difference of total import and export volume. Inter and extra differences play a different role in Theil index of total import and export volume and actual utilization of foreign capital. By analyzing reasons of these differences, we list some suggestions about increasing Anhui province’s competition of Outward-oriented economy. Each government is supposed to make full use of the policies, strengthen cooperation, conduct resources consolidation better, build more inland-ports, make full use of the advantages of labor and resources, focus on talent cultivation and exchange.