Why is Chinese Regional Output Diverging?
AbstractIn 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 InfoPaper provided by Lund University, Department of Economics in its series Working Papers with number 2008:15.
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.
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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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China; Output convergence; Panel unit root tests; Common factor;
Find related papers by JEL classification:
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-11 (All new papers)
- NEP-CNA-2008-11-11 (China)
- NEP-GEO-2008-11-11 (Economic Geography)
- NEP-TRA-2008-11-11 (Transition Economics)
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- Andersson, Fredrik N. G. & Edgerton, David & Opper, Sonja, 2011.
"A Matter of Time: Revisiting Growth Convergence in China,"
2011:23, Lund University, Department of Economics, revised 01 Mar 2012.
- Andersson, Fredrik N.G. & Edgerton, David L. & Opper, Sonja, 2013. "A Matter of Time: Revisiting Growth Convergence in China," World Development, Elsevier, vol. 45(C), pages 239-251.
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