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We carry out an econometric analysis of the Chinese regional system using Chinese economic data, constructing Chinese national and regional production and investment models by sector, in order to discover the causes of and remedies for interregional disparity, and to investigate the relation between the regional systems and the national economy in China. It is shown that regional production technology is a minor factor causing Chinese interregional disparity, and that regional investment level is the most important factor.

Interregional Disparity and Regional Economic System in China