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A Matter of Time: Revisiting Growth Convergence in China

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Author Info

  • Andersson, Fredrik N.G.
  • Edgerton, David L.
  • Opper, Sonja

Abstract

China’s unbalanced growth strategy has seemingly fostered growing inter-regional growth disparities and there is little evidence of wealth trickling down from richer provinces to poorer provinces. Standard convergence tests, however, may be ill specified to detect underlying long-term growth trends in small samples due to the pronounced and frequent inter-regional short-term fluctuations. Our paper suggests a novel approach to distinguish between these long-term growth trends and short-term fluctuations. Based on provincial data from 1978 to 2009, our results indicate that China’s provinces only diverge over the short-term. Over the long term, provinces cluster into two converging growth clubs.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 45 (2013)
Issue (Month): C ()
Pages: 239-251

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Handle: RePEc:eee:wdevel:v:45:y:2013:i:c:p:239-251

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: regional convergence; developing countries; growth; China;

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    by UDADISI in UDADISI on 2013-02-09 02:58:00
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Cited by:
  1. Françoise Lemoine & Grégoire Mayo & Sandra Poncet & Deniz Ünal, 2014. "The Geographic Pattern of China's Growth and Convergence within Industry," Working Papers 2014-04, CEPII research center.
  2. Andersson , Fredrik N. G. & Ljungberg, Jonas, 2014. "Grain Market Integration in the Baltic Sea Region in the 19th Century," Working Papers 2014:3, Lund University, Department of Economics.

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