An Analysis of Regional Economic Disparity and Causes Based on Theil Index

his paper has chosen the time serious of 1990～2005 as study phase,GDP per capita as the major variable indicator for testing regional economic disparity,the sufficient evolutional characters of which in Fujian province has been analyzed using Theil index in the 1990s.Then,this paper decomposes the regional disparities in Fujian province from two aspects,respectively of region—decomposition and section—decomposition.The conclusion is that the most contribution to integrate disparities,as to region—decomposition,come from intra—regional disparities within Southeast of Fujian and interregional disparities between the three zones in Fujian.We also find that as to section—decomposition,the most contribution to integrate disparities comes from secondary industry and tertiary industry.Finally,the author discusses main causes of regional economic disparity in Fujian province.