Measuring divergence in provincial growth in China: 1981-2004
AbstractProvincial income disparity in China has been increasing with rapid economic growth, yet the measurement of the causes of the divergence is relatively inadequate. Based on growth regression analysis and “counterfactual econometrics”, this paper constructs “counterfactual” relative per capita income with consideration of several factors such as initial income level, physical capital, employment, human capital, infrastructure, degree of openness and urbanization. We then measure different factors' contribution to β-convergence and the σ-convergence across provinces. We find out that while contributing significantly to economic growth, different infrastructure, human capital and urbanization rates also result in provincial divergence.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Journal of Economic Policy Reform.
Volume (Year): 11 (2008)
Issue (Month): 3 ()
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- Tsun Se Cheong & Yanrui Wu, 2013. "Globalization and Regional Inequality," Economics Discussion / Working Papers 13-10, The University of Western Australia, Department of Economics.
- Cheong, Tsun Se & Wu, Yanrui, 2013.
"Regional disparity, transitional dynamics and convergence in China,"
Journal of Asian Economics,
Elsevier, vol. 29(C), pages 1-14.
- Tsun Se Cheong & Yanrui Wu, 2012. "Regional Disparity, Transitional Dynamics and Convergence in China," Economics Discussion / Working Papers 12-23, The University of Western Australia, Department of Economics.
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