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An empirical study of openness and convergence in labor productivity in the Chinese provinces

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  • Yanqing Jiang

Abstract

Based on the theoretical framework of the Solow growth model, this paper employs a dynamic panel data approach to examine the impact of openness on growth and convergence in labor productivity in the Chinese provinces during the period 1984–2008. The study finds that regional openness has a significantly positive effect on regional growth in labor productivity in the Chinese provinces. When regional heterogeneity and regional openness are accounted for, the study finds fast conditional convergence in labor productivity across the Chinese provinces. As a byproduct, this study also estimates the structural parameters of the aggregate production function in the case of China. In sum, the major findings of this study lend strong support to the claim that openness promotes growth of labor productivity in China. Copyright Springer Science+Business Media, LLC. 2012

Suggested Citation

  • Yanqing Jiang, 2012. "An empirical study of openness and convergence in labor productivity in the Chinese provinces," Economic Change and Restructuring, Springer, vol. 45(4), pages 317-336, November.
    • Handle: RePEc:kap:ecopln:v:45:y:2012:i:4:p:317-336
    DOI: 10.1007/s10644-011-9120-1
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    Cited by:

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    More about this item

    Keywords

    Openness; Economic growth; Convergence; Productivity; O47; O53;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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