Are There Spillover Effects Between Coastal and Non-Coastal Regions in China ?

The evolution of regional policy between the Mao era and the Deng era generated much debate concerning inter-provincial disparities and the trade-off between efficiency and equity. The aim of this paper is to explore the existence of regional growth spillover effects looked for Deng’s policy. Indeed, the main objective was the spread of coastal provinces’ growth onto inland provinces’ growth. After reviewing the theoretical underpinnings of such effects, their existence is tested with panel data, for the period 1981-1998. Moreover, the hypothesis of an equal distribution of these effects over all the inland provinces is also tested. A relative failure to boost development of the western provinces from the coastal provinces’ growth is observed. Hence, it would seen to be an error to wait for spillover effects to be sufficient to reduce disparities between Chinese provinces in the short run.