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Determinants of Economic Growth and Spread-backwash Effects in Western and Eastern China

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  • Shanzi Ke
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    Abstract

    This paper comparatively assesses the major contributors to economic growth and spread-backwash effects in Western and Eastern China over the period 2000-2007. The empirical findings indicate that economies in both regions increasingly agglomerated in large cities; the marginal products of domestic capital and labor in the western region were, respectively, two-thirds and half of those in the eastern region; FDI was more productive than domestic capital. Spatial econometric analysis reveals that the central cities in Western China had mild spread effects on each other and backwash effects on the nearby rural counties and, in contrast, the central cities in the eastern region competed with each other and had backwash effects on nearby rural counties but spread effects on neighboring county-level cities. The paper draws several policy implications in relation to the improvement of factor inputs and construction of growth centers in the western region. Copyright 2010 The Author. Journal compilation 2010 East Asian Economic Association and Blackwell Publishing Ltd..

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    Bibliographic Info

    Article provided by East Asian Economic Association in its journal Asian Economic Journal.

    Volume (Year): 24 (2010)
    Issue (Month): 2 (06)
    Pages: 179-202

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    Handle: RePEc:bla:asiaec:v:24:y:2010:i:2:p:179-202

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    Cited by:
    1. Domènec Melé & Antonio Argandoña & Carlos Sanchez-Runde, 2011. "Facing the Crisis: Toward a New Humanistic Synthesis for Business," Journal of Business Ethics, Springer, vol. 99(1), pages 1-4, March.
    2. Jiang, Crystal X. & Yang, Qin & Li, Sali & Wang, Yong, 2011. "The moderating effect of foreign direct investment intensity on local firms' intangible resources investment and performance implications: A case from China," Journal of International Management, Elsevier, vol. 17(4), pages 291-302.

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