Abstract
As a grand policy of realizing the rapid development of the western region and narrowing the income gap between the western region and the eastern and central regions after China’s reform and opening up, it is of great practical significance to objectively study its policy effects. This paper uses the data of municipal districts in Chinese cities from 1997 to 2014 in China City Statistical Yearbook to evaluate the policy effect of the western development strategy by using the method of difference-in-difference propensity score matching (PSM-DID). The research results show that the western development policy has not improved the economic growth of the western region, but has negatively affected the economic growth of the western region. In addition, economic growth in the western region may be due to factors such as fixed asset investment, foreign direct investment, and higher education levels, etc. Therefore, the strategic direction of the development of the western region should focus on human capital investment, improve the market economy system, and strengthen exchanges and cooperation between regions in the future.
Highlights
Since the reform and opening up in 1978, China’s economy has been developing rapidly
This paper uses the data of municipal districts in Chinese cities from 1997 to 2014 in China City Statistical Yearbook to evaluate the policy effect of the western development strategy by using the method of difference-in-difference propensity score matching (PSM-Difference in Difference (DID))
This paper studies the impact of western development on the economic growth of the western region by using the method of difference-in-difference propensity score matching (PSM-DID) and using the data of municipal districts in Chinese cities from 1997 to 2014
Summary
Since the reform and opening up in 1978, China’s economy has been developing rapidly. At the same time of rapid economic development, China’s economic development is facing a series of problems, especially the dilemma faced by the imbalance of economic development in the eastern, central and western re-. In order to narrow the gap between the economic development of the western region and the central and eastern regions and promote the coordinated development of the inter-regional economy, in September 1999, the Fifth Plenary Session of the 14th Communist Party of China Central Committee proposed that the state should implement the western development strategy. The main measures include: increasing fiscal transfer payments and investment in construction funds, prioritizing construction projects, increasing financial credit support, implementing tax incentives, and adjusting prices using price charging mechanisms, etc
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
