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Why is Chinese Regional Output Diverging?

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Author Info

  • Westerlund, Joakim

    ()
    (Department of Economics, Lund University)

  • Edgerton, David

    ()
    (Department of Economics, Lund University)

  • Opper, Sonja

    ()
    (Department of Economics, Lund University)

Abstract

In a recent paper Pedroni and Yao (2006) present strong evidence suggesting that Chinese regional output is diverging, a result that flies in the face of the current opinion of Chinese policymakers. This paper provides an in-depth analysis of the reasoning behind this finding. Our main result is that divergence does exist, even when new data and more advanced methods of analysis are used. We also find that it has both an idiosyncratic and a common component. Hence, the increased output inequalities observed at the regional level are due to both region-specific disparities and to disparities between clubs of regions.

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Bibliographic Info

Paper provided by Lund University, Department of Economics in its series Working Papers with number 2008:15.

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Length: 24 pages
Date of creation: 29 Oct 2008
Date of revision: 03 Dec 2008
Publication status: Published as Westerlund, Joakim, David Edgerton and Sonja Opper, 'Why is Chinese Provincial Output Diverging?' in Journal of Asian Economics, 2010, pages 333-344.
Handle: RePEc:hhs:lunewp:2008_015

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Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/en
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Related research

Keywords: China; Output convergence; Panel unit root tests; Common factor;

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Cited by:
  1. Andersson, Fredrik N. G. & Edgerton, David & Opper, Sonja, 2011. "A Matter of Time: Revisiting Growth Convergence in China," Working Papers 2011:23, Lund University, Department of Economics, revised 01 Mar 2012.

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