All Title Author
Keywords Abstract


The Impact of Policy Intervention on Regional Economic Growth in China

DOI: 10.4236/me.2018.912137, PP. 2224-2232

Keywords: Policy Intervention, Regional Economic Growth, PSM-DID

Full-Text   Cite this paper   Add to My Lib

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.

References

[1]  Liu, R.M. and Zhao, R.J. (2015) Western Development: Growth Drive or Policy Trap—An Analysis Based on PSM-DID Method. China Industrial Economics, 6, 32-43.
[2]  Gan, W.Y., Xu, X.X. and Yi, J. (2011) Achievement, Problems and Countermeasures for Implementation of Western Development Strategy. Economic Geography, 1, 40-46.
[3]  Liu, S.L., Wang, Y.H. and Hu, A.G. (2009) The Effect of Western Development Program and Regional Economic Convergence in China. Economic Research Journal, 9, 94-105.
[4]  Li, G.P., Peng, S.Q., Zeng, X.F. and Yang, Y. (2011) Evaluating the Economic Effect of Western China Development Strategy—Based on Economic Growth Quality Perspective. Modern Economic Science, 4, 110-124.
[5]  Xiao, Y.C. (2012) The Effect of Tax Preferential Policy and Its Future Direction in Western Development. Finance & Economics, 3, 85-92.
[6]  Peng, X. and Chen, Z.C. (2016) Impact Evaluation on China’s Western Development Policy. China Population, Resources and Environment, 3, 136-144.
[7]  Zhang, C., Zhou, B., Lv, M.Y. and Liu, X.F. (2017) Has West China Development Directly or Indirectly Brought Pollution Haven? China Population, Resources and Environment, 4, 95-101.
[8]  Yang, Z.H. (2011) Nonlinear Study on the Relation between Government Scale, Government Expenditure Growth and Economic Growth. Quantitative Economic and Technological Economic Research, 28, 77-92.
[9]  Li, Y. and Yin, J.F. (2005) High Savings, High Investment and China’s Economic Growth in the Process of Labor Transfer. Economic Research, 2, 4-15+25.
[10]  Wang, W. (2008) Research on Dynamic Correlation between Savings, Investment and Economic Growth—Based on Data Analysis of China from 1952 to 2006. Nankai Economic Research, 2, 105-125.
[11]  Mao, Q.L. (2011) Does the Great Development of the West Help to Reduce the Income Inequality in the Western Region—Empirical Study Based on Double Difference Method. Financial Science, 9, 94-103.

Full-Text

comments powered by Disqus