I. Chapter numbering title chapter iii. Theoretical knowledge point 1 for regional economic balance development and the theory of regional economic balance in regional spatial balance. 2. Meaning and type of balanced growth theory. 3. Big push theory. 4. The vicious cycle of poverty. 5. The neoclassical regional growth theory. The focus of this chapter is on dilemma 1, the theoretical basis for the major thrust theory - external economic effects. Theoretical basis for large-scale investment plans — the smee theorem. 2. The theory of the vicious cycle of poverty. 3. The mechanism for the balanced operation of neoclassical theory — the inversion of elements. 4. The application premise of neoclassical theory — inter-regional technical consistency. Learning objective and guideline 1 of this chapter to distinguish between the theory of balanced regional economic development, which focuses on the issue of balanced regional economic development between economic sectors
2. Another category is the emphasis on the spatial balance of regional economic development, i. E. The balance of economic development in each region. 2. Mastering the theory of the balance of regional economic structures, which is mainly a driving force for the theory of balanced development with that of nex. 3. The theory of the spatial balance of regional economies is dominated by neoclassical regional growth theories. It is important to focus on understanding the two types of regional balanced development theory, which are not theoretical in nature. This is particularly clear in learning. 5. One of the priorities of this chapter is the content of the neo-classical theory on inter-regional technical coherence, in which learning is strengthened. This chapter is preceded by a reflection on whether regional economies are balanced or uneven in terms of objective patterns. 2. Why do the doctrine of balanced regional economic development consider regional economies to be balanced? 3. Why regional balance can be analysed in terms of both industrial and spatial structures
3. The development process. 4. In reality, both balanced and unbalanced regional economic development exist, and which one prevails. 5. What is the philosophy of regionally balanced development? Chapter iii of the chapter's specific content (main subject) theoretical economists of regional balanced economic development paid early attention to the issue of economic equilibrium. The general equilibrium theory introduced in 1871 by the french economist m. Walras, founder of the lausanne school, was the first one established in economics on the issue of equilibrium, 20 years earlier than the partial equilibrium theory of the neoclassical economist a. Marshall. We know that the equilibrium analysis approach in economics only takes into account changes in the price of a single commodity vis-à-vis supply and demand, while the general equilibrium approach takes into account changes in the price and supply-demand relationship of all markets, all commodities and commodities
The simplest general equilibrium model is a market model that assumes that only two commodities exist. That is to say, in economic analyses, such as consumer behaviour or producer production theories, the balance between maximizing the effectiveness of individual consumers or maximizing the profits of individual manufacturers is often discussed, i. E., the local balance, or, assuming that other conditions remain the same, the decision to discuss only the price of one commodity or factor of production is also the local balance. If, for example, the interaction between producer behaviour, consumer behaviour, or the interdependence and regulation of the two, or the interaction between commodity and factor prices, or the relationship between the two, are studied, then there is a general balance if, at the end of the day, the interaction between those goods, factors or behaviours is balanced. Thus, general equilibrium analysis is far more complex than local equilibrium analysis. Local balance
Analysis and general equilibrium analysis, together with static and dynamic analysis, micro and macro analysis, and qualitative and quantitative analysis, together constitute the most basic analytical methods of western economics. However, these economic principles are balanced or non-balanced, discussing commodity, factor-based market price decisions or consumer-producer effectiveness decisions, as well as their interrelationships, which differ from the balanced and non-balanced issues discussed in the regional economy. The regional economy explores the issues of equilibrium and disequilibrium, primarily from two perspectives: the balance of economic or industrial structures, i. E. The balanced development of industries; and the balance of economic development between regions, starting from the spatial structure. Thus, the theory of regional balance or non-balancedness can be divided into the theory of (non-)balancedness of regional economic structures and (non-) evenness of space structures from the perspective of economic and spatial structures. But we often can
It has been observed that in some of the literature the two equilibrium theories are used indiscriminately. For example, the theory of big push, which emphasizes the balanced development of industry from the perspective of industrial structure, and the causal principle of circular accumulation, which emphasizes the balanced development of the region from the perspective of space, are presented together. While both are balanced, one industry and the other region are clearly two approaches, two systems that we believe cannot be compared together. While the theory of a balanced regional economic structure consists mainly of rosenstein rodin's big push theory and nex's theory of balanced growth, the theory of an unbalanced regional economic structure is limited to heshman's theory of unbalanced development. Moreover, heshiman's doctrine of unbalanced development also included the idea of an unbalanced regional space structure, so that it could also be applied as an unbalanced theory of regional space structures. And when it comes to the theory of regional spatial balance, it means new
7/ the classical regional growth theory, based on the neoclassical economic growth theory of nobel laureates, american economist r. R. Solow and australian economist t. T. Swan. Cyclical cumulative causal principles, growth pole theory, gradient theory and point-axis theory, which are often found in books, are referred to as regional spatially unbalanced theories. Section i: the idea of regional economic structure equilibrium — balanced growth theory i, balanced growth theory and its assessment of balanced growth theory was originally born in the 1940s, referring to industrialization or economic development through simultaneous large-scale investments across industries or sectors of the national economy, with a view to their full development at the same or different rates. There are three types of balanced growth: one emphasizes the size of investment; the other focuses on the path of economic development; and the other is the type of trade-off between the two. Balance
The original meaning of growth: to overcome the indivisibility of supply and demand in the development process through large-scale investment. The indivisibility of supply refers to the integrity of capital (especially social capital in general) and to economies of scale that can only be derived from investment in many economic activities at the same time; the indivisibility of demand refers to the limitations on the profitability and viability of economic activity caused by market size. The expansion of balanced growth means that the path of economic development and the pattern of investment must balance the different sectors of the economy and not hamper the development of the other sectors because of insufficient development of one sector. Here, “balancing the different sectors of the economy” does not mean that all sectors will grow at the same rate, but rather that the growth of output in each sector will be consistent with the income elasticity of demand for various products, thereby aligning supply with demand. This implies a “balanced mind” that there are no shortages or bottlenecks. The indivisibility of infrastructure is the process of development
9. The contribution of the most important source of the external economy is indirectly productive and can only take place after a longer gestation. The so-called “indivisibility” of capital supply refers to the indivisibility of the supply of pre-social capital. Given the magnitude of these projects, the interconnectedness and interdependence of the projects, which must be built in parallel in order to be effective, a minimum level of investment is required from the outset to serve as a seed capital and to have the corresponding support facilities in place to build productive capacity. The development of social capital, which creates investment opportunities for other industrial sectors, must precede direct and productive investment that yields relatively quickly. Since the minimum size of infrastructure is large, excess capacity will be inevitable in the early stages of economic development. Because of the indissociability of supply and demand, the path of economic development and the pattern of investment make it imperative to balance different economic sectors rather than one. ]
10. Inadequate sectoral development hampers the development of other sectors, and the balance between the different economic sectors is intended to overcome the role of indivisibility. Here, “balancing the different sectors of the economy” does not mean that all sectors will grow at the same rate, but rather that the growth of output in each sector will be consistent with the income elasticity of demand for various products, thereby aligning supply with demand. This implies a “balanced mind” that there are no shortages or bottlenecks. This is an extension of balanced growth. In order to balance the development of different sectors of the economy, it is necessary to invest simultaneously in these sectors, which will require significant financial resources, which will make it difficult to implement a strategy of balanced economic growth in regions that are lagging behind. However, economists believe that such large-scale investment schemes are unavoidable and are based on the well-known “smith theorem”, i. E. Specialization or division of labour being restricted by market scope. If markets are restricted, some economic activities will
11. Loss of economic viability. If many activities are carried out simultaneously, each provides a market for the products of other activities and, as a result, in isolation, activities that lack significant profitability appear in the context of large-scale development planning, with a corresponding three-type “extreme” balanced growth theory: one represented by rosenstein rodin, with large-scale investment in industrial sectors at the same rate, leading to full industrial growth at the same rate. The second is “moderate” growth, represented by lagena narks, which advocates large-scale investment in all sectors of the national economy at different rates at the same time and at different rates, leading to overall growth at different rates across all sectors of the national economy. The third is a balanced growth of a “complex” type represented by stratton, which advocates a ratio of growth in the various sectors of the national economy based on the sayy law, based on price and income elasticity of the product, to be achieved
Objectives of economic development. The idea of balanced growth avoids a one-sided emphasis on industrialization, neglects the development of other sectors, emphasizes the importance of large-scale investment and the rational allocation of limited resources, takes into account the limitations of the role of market mechanisms and the need to achieve macro-level plans, provides a model of development for developing countries to achieve industrialization and rapid economic development, and thus has important theoretical and practical implications for the formulation of economic development strategy policies in some countries. At the same time, however, excessive reliance on planned and state intervention and increasing constraints such as under-resourced resources and low levels of technology and management have led to an increasing number of economists turning to unbalanced growth theories. Second, the big push theory was introduced by british economist rosenstein rodin in industrialization in eastern and south-eastern europe (1943). Basic content: thesis is for development
13. A strategic approach designed at the beginning of the industrialization of china. The big push is to invest in several sectors of the national economy simultaneously, on a large scale, in order to generate balanced growth in those sectors in order to boost economic development. The main emphasis was on the intersectoral balance between investment and growth, with the view that only a balanced development between sectors or industries could contribute to the overall development of the national or regional economy. At the heart of the big push theory is the external economic impact, which means, on the one hand, that investment in complementary industrial sectors at the same time can create demand-side markets, thus overcoming the small size of domestic markets in developing countries and the demand-side impediments to economic development; and, on the other hand, that investment in complementary industrial sectors at the same time can reduce production costs. Different enterprises can work together to provide services to each other, thus reducing the cost of individual enterprises. To overcome the constraints on economic development posed by demand and supply, lord ross
14 zhang “the industrialization of the region must be sufficiently large” and “such largeness means scope and population, not production”. The implication is that “external economic effects” can only be achieved by simultaneous investment across the country in several complementary industrial sectors to overcome the constraints on economic development on both the demand and supply sides. The reason for large-scale investment is that there is some kind of “inseparability” in the economies of developing countries, and small-scale, sector-specific investment cannot create mutual market demand and thus do not address the root causes. Thus, investment in socially advanced capital must be “large-scale leapfrogging”; large-scale investment can yield economies of scale for both producers and society, not only by reducing costs per se, thereby increasing profitability, but also by sharing “external economic effects” among other enterprises and society as a whole, thereby increasing the profitability of society. With regard to the direction of investment, rooney does not favour the entire national economy
All sectors invest simultaneously, and prefer to invest first in several complementary industrial sectors. The concept of “social pioneer capital” was first introduced, in particular, to emphasize “the accumulation of infrastructure that a society should have before investment in industry in general”. He raised the point that infrastructure played a decisive role in the early stages of industrialization, arguing that the most important role of social capital was to create investment opportunities in other industries. The development of the infrastructure industry must precede those direct and productive investments with faster returns, which constitute socio-economic infrastructure structures and cost-sharing as a national economy as a whole. Investment in infrastructure is a social first-hand capital, and before the consumer goods industry is established, it must be built on a large scale indissolved social first-hand capital, i. E., socio-economic infrastructure. Each of the elements of social capital requires a minimum amount of investment
Such investments usually account for 30-35 per cent of total social investment. At the same time, he argued that, at the early stages of economic development, investment should not be focused on the heavy industrial sector because of the volume of capital required and the long period of recovery. The required heavy industrial products could be obtained entirely through international trade with developed countries. Thus, in the early stages, capital is invested first in the interrelated light industries and other industrial sectors. There are significant domestic and international sources of capital. At the domestic level, emphasis is placed on strengthening the level of savings without lowering the level of consumption. The international side stressed the importance of not adopting a closed model of development based on self-sufficiency and advocated reliance on substantial international investment and capital inflows. Market-based mechanisms alone cannot create social pre-capitalization, which must be achieved through public investment through planning, organization and other steps. With regard to the implementation of the big push strategy, mr. Ross believes that such investment cannot be made by a few private enterprises, but must be organized by the government through a plan. This is mainly due to the lack of profit incentives: 1. The big push is not an increase in profits for an enterprise, but an external economic effect, i. E., if an enterprise invests more and expands its production, it does not benefit directly, but creates conditions for it to benefit businesses in the market. A major push strategy cannot be implemented by private firms on their own initiative. 2. Investment is huge. 3. Infrastructure development is generally the responsibility of the government. The main aspects of the driving theory have been accepted by most economists who advocate investment in developing countries
