Reform and opening up has made China’s economy develop faster than ever. But it has not succeeded in changing the regional disparity in China. In this article, we establish a model factor input called the "lock-in effect" and analyze the channel of the lock-in effect and how it influences the regional economy. On the analyses of thirty provinces’ panel data in China from 1990 to 2005, we find that the lock-in effect of factor inputs further exacerbates the developmental imbalance among regions.
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