The spatial correlation of economic institutional change in China and its impact on economic growth: A social network analysis approach.

Abstract

Economic institutional change is a vital driving force behind the rapid rise of China's economy. However, the incremental approach to economic institutional change has caused unbalanced transformation and economic growth. To this end, we adopted the entropy method to measure the economic institutional change index, and employed social network analysis to reveal its spatial correlation characteristics. We then applied QAP analysis to empirically demonstrate the impact of China's economic institutional change on regional disparities in economic growth. The findings indicated a gradual increase in the level of economic institutions over time and a spatial gradient between the eastern, central, and western regions. Moreover, the spatial correlation network of China's economic institutional change is stable and gradually improving. Nevertheless, the role of provinces in the process of economic institutional change varies: the eastern coastal provinces play a dominant role, the central and western provinces benefit to a lesser extent, and some provinces in northeastern China play a "bridging" and "intermediary" role. Regional differences in China's economic institutional change have widened the regional disparities in China's economic growth, and the impact of each dimension of economic institutions on regional disparities in economic growth is characterized by phases.