Abstract

In the long run，regional economic growth disparity is rooted in the gap of resource allocation efficiency，and firms are micro-decision-making body for the resource allocation in the region. Labor requirements high-paying and capital pursues high profits. Is the flow process of production factors necessarily guide factors allocation from inefficient firms to effective firms？If the answer is no，it means there is a power of distorted resource allocation efficiency to make the resources allocation from high effective firm to the low effective firm. Such regional power differences of distorted resource allocation efficiency will show that the regional market is relatively distorted；regional economic growth gap can be decomposed into economic efficiency gap and inefficiency gap. Whether micro subject can achieve the efficient allocation of resources in the market trading environment，not only depends on the implementation of certain policies at the macro level，but also on distortions reducing resource allocation efficiency in the market trading environment. That market distortion degree and main bias different will make policy effects deviate from the expected results becomes the reasons for the formation or expansion of regional disparities.

In order to study the influence mechanism of enterprise and its allocative efficiency on regional economic growth gap，based on the perspective of firm heterogeneity and the resource allocation efficiency，this book studies the issue of regional economic growth disparities by deep analysis of the intrinsic relationship between the market trading environment and firm efficiency heterogeneity，builds theoretical and methodological framework about heterogeneous enterprise which drives regional productivity dynamic evolution and the formation of regional economic disparities，builds the dynamic mechanism model of firm efficiency heterogeneity resource allocation，and combining with China’s transition reality presents the theoretical hypotheses and empirical tests，and further proposes the feasible countermeasures to solve practical problems of regional economic growth gap in China. This book explores the conditions and paths to achieve efficient allocation of intraregional and interregional resources from the two aspects of government and the market subject，and seeks an effective way of reducing regional economic disparities in the process of economic growth with the resources efficient allocation. Then，The book’s research makes up the relative lack of scholars emphasis on macro and meso-level research instead of the micro-firm heterogeneity and productivity dynamic evolution，provides theoretical and empirical evidence about China’s micro-enterprise for the“new”new economic geography theory.

There are 7 chapters in this book，and the logical system is based on three parts theoretical，empirical and countermeasures study.

In the theorypart，this paper firstly analyzes the factors affecting the stock of regional economic growth gap，finds the total factor productivity and the market degree play a decisive role behind the main impact factors of regional economic disparities. Total factor productivity depends primarily on technology choice and technical efficiency，scale efficiency，policy and institutional environment. The market degree and the degree of market distortions are relevant. The higher the degree of market distortions，the lower market degree. According to the theory analysis of spatial economic structure change in new economic geography，the power of resources spatial allocation comes from the regional comparative advantage of agglomeration forces and dispersion forces. Using total factor productivity as the substitution variable of agglomeration forces and dispersion forces to measure efficiency，in the case of ignoring market distortions，this book studies the way to achieve the potential total factor productivity to improve firm efficiency of resource allocation from technology，scale，policy and system. The optimal path is to firstly adjust the technical efficiency，then adjust the scale efficiency，and finally adjust the route through envelope relations of policy and institutional to improve the potential total factor productivity；this paper builds the dynamic mechanism model about resource spatial allocation with the pull of the potential total factor productivity on the real total factor productivity as a driving force，which is the re-collocation forms of productive factors to enter the high -productivity firms and exit the low-productivity firms.

Based on the reality of real market with varying degrees of market distortions for a perfectly competitive market，this paper further studies the impact of market distortions on firm total factor productivity expressed as capital distortions and output distortions，from the perspective of the resources allocation change among firms. In the macro the two kinds of distortions are shown as the inefficiency of the regional economic growth gap. In order to define the market-distorting subject，with the idea of Hicks，neutral production function，we build regional production function and factor productivity growth function，and discuss the dynamic equilibrium conditions eliminating market distortions on equilibrium analysis of firm heterogeneity and regional productive factors allocation. According to the above theoretical synthesis and China’s transition characteristics，this paper puts forward the following testable theoretical hypothesis：there is a relatively distorted market between china’s regions，and the enterprise distorting the market is characterized by state-owned enterprises，and the state-owned enterprises has distorted the market and benefit from the distorted market transactions，which leads to the power effect decline of heterogeneous firm resource allocation. The capacity difference of interregional state-owned enterprises obtaining firm features revenue is the root causes of regional economic growth gap with inefficiency.

In the empirical part，according to the theoretical analysis of the fact that regional economic growth gap lags behind the regional total factor productivity gap，the theoretical explanation of the“inverted U”hypothesis between total factor productivity and regional economic growth gap，this paper makes the efficiency test standard of regional disparities. Using the 2001-2007 statistics data of China’s manufacturing enterprises divided into three regions，this paper confirms the existence of the relative distortions in China’s inter-regional market，and empirically analyzes the degree of market distortions of different industries in different regions. Second，the empirical study on heterogeneity in firm ownership，market distortions and regional growth gap find that state-owned enterprises in China’s three regions are the main subject affecting the regional market distortions. The difference of the state-owned enterprises distorting the market is the main reason for the relative distortions in the regional market. After the above theoretical hypothesis has been supported by empirical data，from the opportunity cost view of government decision-making，this paper further studies on the formation of the relationship between the resource allocation efficiency and regional growth gap，and find that the government represents the interests of the entire region，and there is a big decision-making opportunity cost in regional coordination by the use of appropriate internal and external policies，so that the government has lost the opportunity to obtain a higher regional resource allocation efficiency to narrow the gap of regional economic growth.

Regional spatial agglomeration effect essentially comes from enterprises’ external economic phenomenon caused by local government expenditure. Taking into account the characteristics of China’s transitional economy，this paper studies the regional spatial agglomeration effects combining with heterogeneous firm features with the hierarchical linear model. In short，the above empirical results offer support for policy options of the governments to eliminate market distortions and efficiently use resource allocation dynamic mechanism of firm efficiency heterogeneity to narrow the gap between regional economic growth from the five levels：the existence of the relative distortions in China’s inter-regional market，regional differences in industry market distortions，firm subject of the market distortions，regional spatial clustering effect，and the opportunity cost of government decision-making.

Finally，in countermeasures study，this book puts forward suggestions to eliminate the inefficient growth gap caused by market distortions，and balance efficient growth gap by the firm efficiency heterogeneity resources allocation dynamic mechanism.

Key words：Firm Efficiency Heterogeneity，Resource Allocation Dynamic，Market Distortions，Regional Economic Growth Disparity