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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)

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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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File URL: http://www.nek.lu.se/publications/workpap/Papers/WP08_15.pdf
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Publisher 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
Handle: RePEc:hhs:lunewp:2008_015

Contact details of provider:
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/
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Related research
Keywords: 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
O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

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This page was last updated on 2009-11-23.

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