ABSTRACT

This chapter investigates the major factors causing regional economic growth and spatial inequality in the context of Guangdong Province. It attempts to analyse the significance of history, foreign direct investment (FDI) and the state for regional economic development in Guangdong. The relatively rapid economic development of Shaoguan has demonstrated a challenging case in the study of the unbalanced regional growth in Guangdong during the reform period. Nevertheless, a key question is whether or not foreign direct investment is an independent causal factor in regional inequality in Guangdong during the reform period. While the Reform and Development Outline for the Pearl River Delta Area (PRDA), 2008–20 released by the Chinese government should stimulate the growth of the PRDA, it inevitably will further widen regional inequality within Guangdong in the future. The Outline is an attempt to respond to these problems of industrial and economic structure, and to cope with the global economic crisis.