In 1999, the then Chinese President Jiang Zemin declared his policy of ‘Western Area Development’, which aimedtoachieve economic development for the western region in China. This masked a substantial change in regional development policy in China. After the central government of China had implemented an ‘open door’ policy, China then applied the ‘Step Ladder policy’ for regional development. The intention of this policy was to start by developing the coastal region, and then to move on to the development of the interior regions. Inpractice, the coastal regions of China have developed rapidly, but the interior regions have been relatively underdeveloped. The regional disparities that have resulted have been one of the main concerns for policy planners at both national and regional levels as well as researchers both inside and outside China. This is the main reason why so many regional scientists or analysts have begun to study regional development in China.
KeywordsForeign Direct Investment Regional Development Spillover Effect Interior Region Regional Disparity
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