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Multi-regional CGE Model and the Simulation of Regional Transfer |
ZHU Yan-Xin, XUE Jun-Bo, WANG Zheng |
1.Qingdao China Communist Party School,Qindao,China; 2. Chinese Academy of Sciences, Beijing, China; 3. East China Normal University,Shanghai,China |
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Abstract This paper researches the multiregional policy CGE model from the perspective of how to increase the region harmony. According to the features and factors of the regional gap, the characters of the development difference among the regions and the availability of data, we divide the whole economy into eight regions and make some multiregion simulation analysis. The simulation results show that region output grow when the central government increases the transfer to local government no matter what the economy development will be. The growth rate in the southeast region is larger than the middle region and that in the middle region is larger than the south region while the total output of the whole country also increases. The simulation results also show that the local government revenue and the income of resident in the region which receives the transfer increase when the central government increase the transfer. However, the income growth of the urban households is larger than the rural households, which shows that urban residents are the main beneficiaries of the public services.
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Received: 03 December 2008
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