Natural Resources and Regional Economic Development in China^[1]

Dongliang Yang Chunfeng Li^[2]

Abstract: The purpose of this paper is to examine the effects of natural resources on regional economic development in China. We use three indicators that represent water, land and mineral resources to evaluate their individual effects. Then various variables reflecting infrastructure, education and reform and opening policies are added to test which aspect is more responsible for regional economic development. It turns out that natural resources have only weak effects, while the major contributors to higher- -income level and growth rates are market reform and opening policies.

Keywords: Natural Resources; Regional Economic Development; Infrastructure; Market Reform; Openness