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An Evaluation on the Effects of the Policy of the Great Campaign of Western Development of China in the First 10 Years Based on the Kuznets regional Inverted-U Theory

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Chinese Business Review 2013年第10期12卷 661-672页

作者： Huan Zheng Xingming Fang Southwestern University of Finance and Economics Chengdou China

In order to reduce the regional differentials or narrow the gap in economic development between eastern and western areas and prevent the intensification of contradictions resulting from the regional inequality during the development process, the government of China launched the Great Campaign of Western Development （GCWD） in 2000. In this paper, we will evaluate the effects of the first 10 years＇ GCWD and use the latest Chinese annual data from 1978 to 2010 to investigate the problem of regional differentials in the development process, evaluate the effects of GCWD policy and test whether there is a regional Kuznets inverted-U curve in the regional development of China. The result shows that there are both good and bad news： the good news is that the inverted U-shaped curve of absolute differential between eastern and western areas finally emerges （the previous studies showed that the inverted-U curve did not appear and the differentials between eastern and western areas became worse） and the bad news is that the differential is in the first half of the inverted U-shaped curve in our choice of time span （1978-2010）, that is, it is still in the situation of deterioration, and the turning better point will emerge in 2025. Although the western areas have benefitted from GCWD, the absolute gap has been still widened. To narrow the gap, the western areas should accelerate the industrial development and the government should adjust the policy and make more efforts to support the development of the industry in the western areas, especially cultivate and support the development of the western characteristic and advantageous industry rather than just supporting the construction of infrastructure in the western areas.

关键词： Great Campaign of Western Development (GCWD) the gap between eastern and western areas regional inequality or differential inverted-U curve

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