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.
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