Hub-Periphery Development Pattern and Inclusive Growth

The hub-periphery development pattern of
the Guangdong economy, to some extent, is a miniature of
that of the Chinese economy. The Pearl River Delta, drawing
from its first-nature comparative advantages in factor
endowments and proximity to Hong Kong SAR, China, and Macau
SAR, China, and the second-nature advantages as first-movers
in the reforms in attracting and retaining domestic and
foreign resources, has developed into a regional economic
center. This paper examines the pattern of inter- and
intra-provincial migration and that of the concentration of
production, to explore the challenges and opportunities for
the success of “double transfer.” The paper suggests a
four-prong approach, to improve the business environment,
support the realization of latent comparative advantages,
increase the skill level of the labor force to support the
upgrade of the production structure, and protect the
vulnerable, to support the inclusive growth of the economy
in Guangdong in a sustainable manner.