Social Sciences in China (Chinese Edition)

No. 4, 2024

The Growth Contribution of China’s Regional Coordinated Development Strategy—On the Dispute of Regional Policy Paths

(Abstract)

Nian Meng, Zhang Haipeng and Wang Yao

Balancing macroeconomic growth with regional equilibrium development is essential for China’s pursuit of the Chinese path to modernization through regional coordinated development. Taking a macroeconomic output perspective and employing a counterfactual framework, this paper evaluates the economic growth effects of China’s “place-based” and “people-based” regional policies, and explores the future implementation effects and optimal combinations of these policies under different market environments. The essence of the academic debate over regional policy paths lies in differing understandings of the relationship between government and markets. To effectively promote common prosperity, China’s strategy for regional coordinated development should continue to prioritize “place-based” policies, leveraging government coordination in resource coordination and regional planning, while complementing them with “people-based” policies aimed at deepening the market-oriented allocation reform of labor factors and enhancing endogenous growth momentum in underdeveloped areas.