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Regional disparity, transitional dynamics and convergence in China

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  • Cheong, Tsun Se
  • Wu, Yanrui

Abstract

Most of the earlier studies on the convergence of income in China are based on provincial level data with a few papers focusing on intra-provincial units’ transitional dynamics. The objective of this study is to fill the void in the literature by using county-level data which cover 1485 counties and county-level cities in 22 provinces for the period of 1997–2007. This paper makes several contributions to the literature. The findings in this paper show high persistence in income distribution among many spatial groupings. Thus the poor county-level units may remain relatively poor over time. This study provides very little evidence of convergence to the mean income in various spatial groupings. Furthermore, the empirical analysis highlights differences in transitional dynamics between cities and counties.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Asian Economics.

Volume (Year): 29 (2013)
Issue (Month): C ()
Pages: 1-14

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Handle: RePEc:eee:asieco:v:29:y:2013:i:c:p:1-14

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Keywords: China; Convergence; Markov transition matrix; Inequality;

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