This article uses both cross-section and panel data approaches to study regional growth in China. Inter-regional income inequality increased (&sgr; divergence), the rich regions became richer but poor regions poorer (β divergence), over the data period 1978-95. This contradicts results from other cross-region country studies shown by Sala-i-Martin [1996] and some earlier studies on China. Only after controlling for regional effects, population growth, and investment in both physical and human capital do the data show significant β-convergence. More interestingly, the degree of openness and transportation are two other important factors responsible for differences in regional growth. This finding has important implications for regional development policy.
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Volume (Year): 38 (2001) Issue (Month): 2 (December) Pages: 167-186 Download reference. The following formats are available: HTML
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