Disparities in Mainland China`s Regional Economic Development and Their Implications for Central-Local Economic Relations

Abstract

Decentralization and market orientation are major issues confronting mainland China’s central and local governments. Scholars and officials generally perceive that economic reforms have widened the disparities among provinces. We will analyze these disparities among the thirty provinces based on various empirical data. The results obtained indicate that there is less disparity based on a ratio comparison. This is because market-oriented economic reforms have promoted effective economic incentives and relaxed restrictions on resource transfers. The potential of each region has hence gradually emerged and further accelerated overall economic growth. This has also achieved the goal of more equitable regional development.