China's Regional Disparity and the Trickling-Down Effect from Coastal Regions to Inland Regions: An Analysis Using a Multi-Regional Input-Output Model

Abstract

This study examines the trickling-down effect from the coastal regions to the inland regions of China to better understand her regional disparity. Here the trickling-down effect is analyzed mainly from the perspective of the interregional inputoutput analysis. Using a multi-regional input-output model, our analysis shows that the magnitude of the effect (especially the one to the western regions) is quite small, although two coastal growth poles (i.e. the central coastal region and the southern coastal region) have some effects to their adjacent inland regions. The results show the validity of the China's recent development strategy for her western regions.