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Measuring divergence in provincial growth in China: 1981-2004

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  • Wei Zou
  • Ziyin Zhuang
  • Hao Zhou
  • Hairong Song
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    Abstract

    Provincial 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 Info

    Article provided by Taylor & Francis Journals in its journal Journal of Economic Policy Reform.

    Volume (Year): 11 (2008)
    Issue (Month): 3 ()
    Pages: 215-227

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    Handle: RePEc:taf:jpolrf:v:11:y:2008:i:3:p:215-227

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    Related research

    Keywords: economic growth; provincial divergence; “counterfactual econometrics”;

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    Cited by:
    1. 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.
    2. Tsun Se Cheong & Yanrui Wu, 2013. "Globalization and Regional Inequality," Economics Discussion / Working Papers 13-10, The University of Western Australia, Department of Economics.

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