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

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  • Yanqing Jiang

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    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

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    File URL: http://hdl.handle.net/10.1007/s10644-011-9120-1
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    Bibliographic Info

    Article provided by Springer in its journal Economic Change and Restructuring.

    Volume (Year): 45 (2012)
    Issue (Month): 4 (November)
    Pages: 317-336

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    Handle: RePEc:kap:ecopln:v:45:y:2012:i:4:p:317-336

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    Web page: http://www.springerlink.com/link.asp?id=113294

    Related research

    Keywords: Openness; Economic growth; Convergence; Productivity; O47; O53;

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    11. Gundlach, Erich, 1997. "Regional convergence of output per worker in China : a neoclassical interpretation," Open Access Publications from Kiel Institute for the World Economy 1765, Kiel Institute for the World Economy (IfW).
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