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Endogenous innovation growth theory and regional income convergence in China

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Author Info
Yingqi Wei (Department of Economics, University of Lancaster, Lancaster, UK)
Xiaming Liu (Aston Business School, Aston University, Birmingham, UK)
Haiyan Song (Department of Management Studies, University of Surrey, Guildford, UK)
Peter Romilly (School of Social and Health Sciences, University of Abertay Dundee, Dundee, UK)

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Abstract

Endogenous innovation growth theory is tested by using panel data for 27 provinces across China. R&D expenditure and openness are added to the standard convergence regressions to control for different structural characteristics in each province. A standardized 't-bar' test for unit roots is applied to examine the properties of the data and identify a long-run relationship among the variables. By allowing for differences in the aggregate production function across regions, we find evidence of convergence. The empirical results support the endogenous innovation growth model in which regional per capita income can converge given technological diffusion, transfer and imitation. Copyright © 2001 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/jid.721
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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 13 (2001)
Issue (Month): 2 ()
Pages: 153-168
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:wly:jintdv:v:13:y:2001:i:2:p:153-168

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Chen, Jian & Fleisher, Belton M., 1996. "Regional Income Inequality and Economic Growth in China," Journal of Comparative Economics, Elsevier, vol. 22(2), pages 141-164, April. [Downloadable!] (restricted)
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  3. Oh, Keun-Yeob, 1996. "Purchasing power parity and unit root tests using panel data," Journal of International Money and Finance, Elsevier, vol. 15(3), pages 405-418, June. [Downloadable!] (restricted)
  4. Andres, Javier & Domenech, Rafael & Molinas, Cesar, 1996. "Macroeconomic performance and convergence in OECD countries," European Economic Review, Elsevier, vol. 40(9), pages 1683-1704, December. [Downloadable!] (restricted)
  5. Sala-i-Martin, Xavier X., 1996. "Regional cohesion: Evidence and theories of regional growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1325-1352, June. [Downloadable!] (restricted)
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  6. Romer, Paul, 1993. "Idea gaps and object gaps in economic development," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 543-573, December. [Downloadable!] (restricted)
  7. Lichtenberg, Frank R, 1994. "Testing the Convergence Hypothesis," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 576-79, August. [Downloadable!] (restricted)
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  10. Helmut Hofer, Andreas Wörgötter, 1997. "Regional Per Capita Income Convergence in Austria," Regional Studies, Taylor and Francis Journals, vol. 31(1), pages 1-12, February. [Downloadable!] (restricted)
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  12. Evans, Paul & Karras, Georgios, 1996. "Do Economies Converge? Evidence from a Panel of U.S. States," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 384-88, August. [Downloadable!] (restricted)
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  19. Bernard, Andrew B & Durlauf, Steven N, 1995. "Convergence in International Output," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(2), pages 97-108, April-Jun. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Chi, Wei & Qian, Xiaoye, 2009. "The role of education in regional innovation activities and economic growth: spatial evidence from China," MPRA Paper 15779, University Library of Munich, Germany. [Downloadable!]
  2. Guy S. Liu & Xiaming Liu & Yingqi Wei, . "Openness and Efficiency of India and China Relative to the World Economy: A Comparative Study," Economics and Finance Discussion Papers 02-18, Economics and Finance Section, School of Social Sciences, Brunel University. [Downloadable!]
    Other versions:
  3. Reuter, Ulrich, 2006. "What Kind of Education Does China Need? The Impact of Educational Attainment on Local Growth and Disparities," Working Papers RP2006/127, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  4. Sailesh Tanna & Kitja Topaiboul, 2005. "Human Capital, Trade, FDI and Economic Growth in Thailand: What causes What?," DEGIT Conference Papers c010_046, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
  5. DOBSON, Steve & RAMLOGAN, Carlyn & STROBL, Eric, 2003. "Why do rates of convergence differ ? A meta-regression analysis," CORE Discussion Papers 2003020, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
  6. Shu-Chen Chang, 2005. "The dynamic interactions among foreign direct investment, economic growth, exports and unemployment: evidence from Taiwan," Economic Change and Restructuring, Springer, vol. 38(3), pages 235-256, December. [Downloadable!] (restricted)
  7. Yingqi Wei, 2003. "Foreign direct investment in China," Working Papers 000053, Lancaster University Management School, Economics Department. [Downloadable!]
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