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Structural Changes In China'S Economic Growth During The Reform Period

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  • Tetsu Kawakami

Abstract

We identify some empirical evidences for the structural changes in the determinants of regional growth, disparities and the convergence speed to the per capita GDP equilibrium during the reform period of 1978–1998 in China. We estimate a growth regression model by augmenting the Solow model with a provincial†level panel data set. The existence of conditional convergence is confirmed throughout the reform period, but the convergence speed is faster in the 1990s than the early reform period. Agro†industry†based rural development contributed to regional growth and eased interregional disparities in the early reform period. Foreign capital inflows took a significant leading role for regional growth during the 1990s, but aggravated interregional disparities. Education and non†state enterprises were among the other keys for regional growth throughout the reform period. These results implies that for achieving sustainable and balanced growth in future, it is essential to extend foreign capital investment to the interior regions, in association with further development of human capital resource and non†state local enterprises.

Suggested Citation

  • Tetsu Kawakami, 2004. "Structural Changes In China'S Economic Growth During The Reform Period," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 16(2), pages 133-153, July.
    • Handle: RePEc:bla:revurb:v:16:y:2004:i:2:p:133-153
    DOI: 10.1111/j.1467-940X.2004.00085.x
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    Cited by:

    1. Furong Jin & Keun Lee & Yee‐Kyoung Kim, 2008. "Changing Engines of Growth in China: From Exports, FDI and Marketization to Innovation and Exports," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(2), pages 31-49, March.
    2. Mohamed Abdouli & Anis Omri, 2021. "Exploring the Nexus Among FDI Inflows, Environmental Quality, Human Capital, and Economic Growth in the Mediterranean Region," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 788-810, June.
    3. Su, Yaqin & Liu, Zhiqiang, 2016. "The impact of foreign direct investment and human capital on economic growth: Evidence from Chinese cities," China Economic Review, Elsevier, vol. 37(C), pages 97-109.
    4. CHI, Wei, 2008. "The role of human capital in China's economic development: Review and new evidence," China Economic Review, Elsevier, vol. 19(3), pages 421-436, September.

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