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Is China’S Urbanization Convergent?

Author

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  • TIE-YING LIU

    (School of Economics and Management, Beijing Jiaotong University, Beijing, China)

  • CHI-WEI SU

    (Department of Finance, Ocean University of China, Qingdao, 238 Songling Road, Qingdao, Shandong, China)

  • XU-ZHAO JIANG

    (School of Economics, Ocean University of China, China)

Abstract

In this study, we apply a stationarity test with a flexible Fourier function proposed by Enders and Lee [Oxford Bulletin of Economics and Statistics, 74 (2012) 574–599] to test the convergence of China’s urbanization. We find that our approximation has greater power to detect U-shaped and smooth breaks than the linear method if the urbanization is, in fact, a stationary non-linear process. It shows that the stationarity of the urbanization level varies across different regions where urbanization levels are convergent mainly in the middle- and low-income regions in China, while the high-income regions’ urbanization is divergent. This, in turn, shows that most of the regions, especially high-income regions, have their own economic evolution rules due to the degree of openness in the economy and urbanization process.

Suggested Citation

  • Tie-Ying Liu & Chi-Wei Su & Xu-Zhao Jiang, 2016. "Is China’S Urbanization Convergent?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(05), pages 1-18, December.
    • Handle: RePEc:wsi:serxxx:v:61:y:2016:i:05:n:s0217590815500587
    DOI: 10.1142/S0217590815500587
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