Specialization and Coordination:New Paradigm, Theory, and Path forRegional Development

Lu Ming1, Xiang Kuanhu2*, Li Pengfei1, Li Jiewei3, Zhong Yuejun4

1 Antai College of Economics & Management, Shanghai Jiao Tong University, Shanghai, China

2 School of Economics, Shanghai University, Shanghai

3 School of Economics and Management, Shanghai Maritime University, Shanghai

4 Faculty of Economics and Management, East China Normal University, Shanghai

Abstract: In its new development stage, China seeks to derive new dynamism fromreform and opening up at a higher level to boost consumption and services. This processcoincides with a further differentiation of comparative advantages across regions. Economicactivity and population will continue to concentrate in clusters in coastal and centralcities amid a continuous outflow of population from remote areas. Development expansionfrom coastal to interior regions and from central cities to the periphery will promote anew regional development paradigm of “dual centers and periphery”. Therefore, China’sregional development strategy should follow the new theory of seeking relative equilibriumamid development, identify regions of population inflow and outflow, and explore a newdevelopment path of regional specialization and coordination. By deepening market reformsand increasing central government coordination, the country is poised to improve the spatialallocation of resources and unleash institutional dividends in the process of developing aunified national market.

Keywords: Regional development, “dual centers-periphery”, comparative advantage,

JEL Classification Code: R12, R58, H77

DOI: 10.19602/j.chinaeconomist.2024.01.05