An Empirical Analysis of Economic Development in Northwest China: Based on the Vicious Circle of Poverty Demands Theory

Abstract

China has accelerated economic development and transferred the industrial approach in three decades high-speed growth. However, the economic development level in Northwest still belongs to national low level. This paper took advantage of Nurkse’s theory of vicious poverty circle in the demand level. It was analyzed empirically according to the economic index about the consumption, income, investment and region GDP in Northwest. The reason why this region appears situation that its economy is a vicious cycle was discussed. And it would put forward to some suggestions about how to break this vicious poverty cycle.