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Institutional difference and regional economic disparity: A game analysis

This paper analyzes the cause of regional economy disparity problem in our country which has become more serious than before in terms of institutional difference. Because of different initial condition, while central government makes different policies for institutional innovation behavior in every region, the local government adopts different balanced strategies too. That will form different choices for the change route of the institution and will cause institutional difference among regions Anally. The institutional difference among regions brings an enormous influence on the economic performance in every region. That causes the enlargement of the regional economy disparity to a great extent.