Regional Economic Development of China and macroeconomic volatility

Abstract：Regional economic development and macroeconomic volatility have a complementary country close relationship ，and the full study on the relationship between the two can grasp the major laws of our country's economic development better.In this article， after the economic development momentum since the reform and opening up Chinese eastern Midwest drawn from the analysis of the country's market economy reform， regional development policies and international trade fluctuations will have an impact on regional economic development.In addition， the overall trend of regional economic development will also affect the development process of Chinese macro economy. Therefore， to reduce the steady development of Chinese economy， it would reduce the volatility of regional economic development of China from the non-balanced development to balanced development of transition.

Key words：Regional Economic；Macroeconomic

1. Introduction

At present， the people of central and western regions are strongly urged to get bonus reform， reform and opening up， Chinese executives， the relevant departments decided to develop the southeast coastal areas， the result is caused by a small number of cities to get help related policies， most of the city or slow development， and now， Chinese economic transition from double-digit growth in the number of units to grow into the new normal economy， but after the western development， the central and western cities have been some development， the central and western part of the city economic indicators compared to the previous some economic indicators straight year rose sharply to 3.076 \"coordinated development\" phase of 1.333， has basically been reduced by half， the current economic indicators in central and western part of the city has been fluctuating within a certain range， compared to the southeast coastal city with a big difference， the regional economy has a certain stage of development， and achieved remarkable results， and the national average level of volatility to the economy than the average of only 78.3%. The results from the nationwide economic fluctuations， the central and western cities of steady economic trends have a significant help， the southeast coastal city of fluctuations related to economic indicators， economic indicators stabilized at 10%， therefore， want to know China's future economic trends， think to understand the problem of China's future economic volatility variation， Midwest city economic trends and economic change should be an important topic of basic research smoothing fluctuations in the economy of China， we shall analyze the problem from a regional economic level. China's economy is in a transition period， the economy has entered a new stage of normal， the economy has been driven by the type of outlet transition to stimulate domestic consumption， China wants to maintain the current economic growth rate， want to ensure a smooth economic transition， we have to change economic development strategy， change the economic development framework， economic re-allocation of resources， changes in the general economic development of the regional economy to new economic structure， scientific planning and economic development strategies for achieving the Chinese dream， rational regional economy， sustainable economic development Significance.

2. Literature review

According to the current view of many economists， the economic growth rate also depends on the length of the economic cycle city， the famous American economist Ellen industry believe the economic cycle will affect the country's economic trends， because the overall value of a certain industry will affect other industries development of the state， thereby affecting the overall economy， cyclical effects related industries will affect the regional effects [1]； IEO in \"regional economic cycle and the economic cycle as a whole，\" the paper said the US overall economic trends related to the economic cycle and industry by understanding the characteristics of the economic cycle industry， the overall economic trend analysis， calculate the economic fluctuation range [2]； Owyang organizations such as data on economic trends in the United states in previous years， all states were analyzed and finishing， the results show， in different economic changes in economic cycles between the different stages of development， state， characterized by fluctuations， fluctuation range， the future trend of reasons for the differences are different [3].

Domestically： Liu Shucheng， who are mainly from the perspective of domestic industrial development situation analysis of regional economic growth and fluctuation range of the problem， that the main reason for the fluctuation range of the industrial economy because of geographical， customs and technology there is a more obvious Regional differences in [4]； Wei Houkai found after the government macroeconomic regulation and control， economic development of China's industrial economy as a whole has an important influence， but due to different reasons influence， but also caused economic development in central and western parts of the city appear morbid phenomenon， but compared with previous years， the central and western cities in southeastern economic index was almost the same economic indicators， relevant difference gradually reduced [5]； Sun Tianqi， Peng Xiaolian analyze the relevance of national urban trend of economic development and national economic policy， the findings show ： economic patterns， economic characteristics of the different regions of China are different， quite different and relevant [6-7]； dingji Gang believes that after China's accession to WTO， the impact of economic trends， has been the main reason for the fluctuation range of the transition to industry factors， not geographical factors [8]

Huang Ze Lin et al.， Virtual architecture of the three departments RBC model to study the influence of the role of macro-control economic fluctuations cycle of Fiscal Policy [9]； Miao Wenlong and other virtual architecture of the area three units eastern， central and western simultaneous analysis of dynamic stochastic equilibrium model multi-zone， main government budget， the effects of monetary policy on the supply situation of regional economic trends [10]. Research methods and related research data shows that the diversity of research on virtual models of economic trends， study the fluctuation range of the problem is important， the study by two stages， the regional economy has a certain understanding[13]， and analysis of the \"national economic policies promulgated\" China's overall economic fluctuations and its mechanism.

3.Regional economic development and macroeconomic relations

（1） National market economy reform process exacerbated the gap between the expansion of regional economic disparities

Market-oriented reforms， the economic system is the adjustment of China's economic leader， the more free market and economic trends the more forward， economists believe that at this stage the relevant characteristics of Chinese economy will continue 20 years， nearly into the economic transformation point， local characteristics economy the main reason is the economic impact of pulling type， relevant economic type determines economic form， the stronger the economy， the more stable economic fluctuations. Related economic organizations in the study of Chinese Regional Economic Index reason Chinese influence economic fluctuations， for economic indicators southeast， central and western cities were consolidated and analyzed in comparison with the previous overall economic GDP， more free market economy， overall GDP growth on the fast， basic proportional. Many economists said that the current role of China's reform and market economy in many ways， the elapsed time， the accumulation of differences in space， resulting in the southeast of China， the central and western regions economic trends severe loss type. With the development of society and economy， due to the backward central and western economic environment， all sectors circulation operation is not in place and other issues arising from regional economic disparities have become the focus of attention. The gap between rich and poor， the problem is not only related to economic fluctuations consumption standards and quality of life of the people， also related to the overall economic development and people's living standards of society， the relationship between the government and the country's image. From the theoretical side， this study may well help you understand the role of fluctuations in market-oriented reforms on the overall economic trends. After the economic reform， the Chinese government first developed southeast coastal city economic development in central and western cities in the 21st century economy is an event， and after China's accession to WTO， the economy began to layout the development of central and western architecture， and current economic development basic mainland capital cities guided by the local government. Therefore， differences in the impact of urban development in central and western economic situation is not the same economic system. Economic system， differences in economic structure of the overall economic development trends， and China's current stage of economic transition， the transformation efficiency and related economic trends， economic system， time zone has a direct impact. Policy because the policy reasons， China's market reform is different from the south-east and then transition to the western city， the state of all economic resources， the amount of funds are configured in the southeast coastal areas， is a coastal city， the system is more flexible and significantly higher than other Midwestern cities economic indicators. Report data represent different economic and political system of local government is an important cause of economic differences of the east and west， to the economic trend will affect economic fluctuations， but also because of geographical， time， space and other reasons there will be regional economic differences.

After the reform and opening up， reform of China's market is mainly determined by the prevailing market economic policies， economic growth， economic fluctuation trends embodied in several ways， one： mainly through market reform and update the market order， to re-establish infrastructure resources， capital operation to combat doctrine， minimize local government administrative interference on the part of government departments were full limits specified for local development of economic institutions and policies， and thus control the overall economic trends， II： At that time， the policy reasons after the reform and opening up， China released the first to develop the southeast coast city， space and cause economic differences， since the time to accumulate and cause timing differences， economic disparities caused by both eastern and western cities economic characteristics are very different， leading to economic fluctuations significantly. Three： through the market order， adjust， re-distribution industry， driven by domestic demand and stimulate consumption， establish a new economic structure， promote economic growth in the western city of controlling the southeast coastal city economic trends， and thus economic fluctuations status situation coastal cities， an average overall the effect of the economic situation.

（2） national and regional development strategies directly affect regional economic development

Promulgated by the state economic development policies and laws， according to the site-specific basis for the establishment of enacting the overall economic trends on various relevant economic policies， from the overall point of view， the economic impact study on the industry's impact on the economy and the industry cycle .

Chinese government has been trying to find ways to improve the wealth gap phenomenon， western development is a classic case， part of the city along the southeast coast or along a more economic development in central and western cities. Reform and opening up， focus on the development of coastal cities， from the end of the century， the state intends to develop the Midwest economy， regional development strategy into the implementation of the state， to improve the economic development infrastructure， supporting facilities related industries for Midwest City， Ended relevant indicators of economic growth.

The main characteristics of regional economic development in the non-equilibrium period is to be able to make up the eastern region to lead the development of the state will invest significant financial incentives are placed in the eastern region， and in order to accelerate the economic development of the eastern region， the Midwest also made great sacrifices in the eastern part of the supply of raw materials， energy resources are relatively very low. That was the country's overall economy is very dependent on the East， resulting in the eastern part of the country is good is good， then the nation's eastern poor poor conditions， but also to influence the development of central and western regions of the eastern part of the case by the profound. Therefore， if the country's economic likened to a car， is the way of non-balanced development of all of these vehicles are on the eastern part of this drive， \"a wheel\" above， while ignoring the power of other wheels， which led to the situation underpowered entire car， not only increased the pressure on a single wheel， causing uneven stress also lead to the country's overall economic risk of increased stability is reduced. Since 2000， China's macroeconomic adjustments were regional unbalanced development model becomes balanced development model， from the east before the main direction of development gradually tilted to the central and western regions， whether it is policy， investment or consumption will be focus on the west， it presents the western development strategy. In the western development process， to achieve the transformation and upgrading of the industrial structure of the three， and the nature of the investment behavior of countries have a better rate of return. East Midwest parallel development trend of China's economic development to provide a triple insurance， when the financial crisis struck in 2008， although not immune to the eastern coastal areas has been a great impact， but the openness of the western region suffered weak less affected by the economic situation is still good for the whole country's economic development provides a strong guarantee. Our selection of the most fundamental reason for focusing on the eastern part of the east central and western common development of strategic adjustment from the 20th century is China's macroeconomic able to steady growth in the economic strategy. The impact on the macroeconomic aspects：

First， the eastern region due to the natural advantages of location results in economic development and foreign trade are more advantages in the early stages of reform through increased support for the eastern region to be the first to inspire overall profitability of the domestic economy. Regional economic development gap， the greater the volatility of the national economy， on the contrary， the regional economic development gap between the smaller， less developed countries， macroeconomic fluctuations. Thus， the beginning of reform and unbalanced regional economic development is one of the major causes significant macroeconomic fluctuations.

Secondly， in terms of regional development policies， there is a positive correlation between the inclination and the country's macroeconomic volatility. When the balanced development of regional economic policy in the situation， macroeconomic volatility is small， when the inclination is large regional development policies， macroeconomic volatility also increases.

（3） Relationship between national macro trade and regional economic fluctuations between

Fluctuations in the national economy and trade will lead to uneven development of regional economy. Specific relationships are as follows： first， the extent of the country's economic strength than the trade imbalance of regional economic development imbalance more obvious， and the trade imbalance is also one of the important factors of economic development is uneven. Regional Economic Trade occupied the country's business trends as well as the proportion of trade trends， growth in foreign trade volume and other factors and trends coincide with the regional economic development was. Second， fluctuations in regional economic development and national trade fluctuations affect the relationship between two variables， mutual respect， regional economic volatility on trade in the country is greater than the impact of national trade on the regional economy， it said that the main factor in regional economic development regional internal supply and demand and industrial structure. Third， import and export trade in the extent of the economic impact on the region， the impact of export and import trade are basically the same， and showing a positive relationship. In contrast， fluctuations in the country's total trade will directly affect the volatility of the regional economy， we can see the development of the regional economy was severely affected internal supply and demand， and for the outside world supply demand is not obvious. Thus， the macroeconomic volatility of the region affected by the economic impact is more profound. Fourth， from the open extent， a large degree of regional economic areas may result in issuance of the business the greater the volatility， on the contrary， the greater the fluctuations in import and export trade， may result in unbalanced regional economic development will be significantly increased. Especially for central and western regions， the economic development of the region for foreign trade dependency is still relatively high degree of openness should also be strengthened， so the impact of foreign trade Midwest suffered also more profound. This is mainly caused by the two cases， many provinces in central and western regions in the energy sector in the country and even the world have a certain influence. Second， too much reliance on resource-based enterprises leads to an imbalance of regional industrial development， but also increases the risk factor of regional economic development. Resulting in significant fluctuations. Fifth， the openness of the areas affected by poor macroeconomic volatility， especially large extent related to fluctuations in foreign trade， so you can explain our underdevelopment in order to gradually improve the central and western regions must be taken to balance the economic level of the macro-economic model.

4. Conclusion

Through the discussion on the relationship between the various levels of regional economic situation and macroeconomic fluctuations， analysis of China's macroeconomic policies in different periods of economic development for the regional economic development impact， but also an analysis of how regional economic development is counterproductive and macroeconomic level. In this paper， the research found that the gradual slowdown of macroeconomic fluctuations from 2000 began to form the Regional Development Strategy for the Beginning of the balance. China's economic development strategy， led by the country's eastern， central and western strategic shift eastward and common development， so that our macroeconomic abandoned the direction of a single drive， so that the development of the eastern region of the pressure is gradually decreased， but also to promote the Midwest investment efficiency and diversified development mode， so that our development model also makes macroeconomic slowing down. Regional economic development in the Midwest all the way up the development trend of a direct impact on the national economy is stable and the most important reason fluctuations. Implementation of balanced regional development model， promoting regional economic development of the country in the face of economic instability environment but can be an important weapon to maintain economic stability.

Through the research， we draw the following two conclusions： First， our regional economic development must unswervingly take the road of coordinated development. So that China's economic development to rid itself of a single model of economic development， promote macroeconomic able to diversify development path. On the one hand coordination of regional economic development model of development can promote economic development in various regions， economic development in remote areas receive some attention to ensure that the gap between people's living standards continued to narrow， only wealthy people can jointly stability and harmony， in order to China's macro economic development to provide strong support. To have both the competition between the various regional cooperation， mutual benefit， complementary advantages. Survival of the fittest mechanism to maintain market presence， so as to enable the regional economy to maintain sustained momentum and vitality. Complementary to each other at the same time can make between regions and common development， to expand the risk of resistance， thereby improving the country's main macroeconomic level.

Secondly， the regional economic development in the process of implementation， to local conditions， specific conditions described， fully taking into account the different regional conditions， their different roles will be a good place， in the use of body function， it can be biased， do not realize the same pattern of development of the various regions. For example， in the eastern part of the city's foreign trade ability， we can develop to the consumption centers in development， and some western regions rich in resources， rich human resources， it is possible to develop production centers in development. Enabling multidimensional model of development of regional economy， coordination of regional development priorities， reducing dependence on international trade markets from a fundamental， in order to achieve stable development of China's macro economy.