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A Matter of Time: Revisiting Growth Convergence in China

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  • Andersson, Fredrik N. G.

    ()
    (Department of Economics, Lund University)

  • Edgerton, David

    ()
    (Department of Economics, Lund University)

  • Opper, Sonja

    ()
    (Department of Economics, Lund University)

Abstract

China’s unbalanced growth strategy has seemingly fostered growing inter-regional growth disparities and there is little evidence of wealth trickling down from richer provinces to poorer provinces. Given pronounced and frequent inter-regional short-term fluctuations in economic growth, standard convergence tests, however, may be ill specified to detect underlying long-term growth trends in small samples. Our paper suggests a novel approach to distinguish between long-term growth trends and short-term fluctuations. Based on provincial data from 1978 to 2009, our results indicate that China’s provinces only diverge over the short-term. Over the long term, provinces cluster into two converging growth clubs.

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Bibliographic Info

Paper provided by Lund University, Department of Economics in its series Working Papers with number 2011:23.

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Length: 37 pages
Date of creation: 04 Jul 2011
Date of revision: 01 Mar 2012
Publication status: Published as Andersson, Fredrik N. G., David Edgerton and Sonja Opper, 'A Matter of Time: Revisiting Growth Convergence in China' in World Development, 2013, pages 239-251.
Handle: RePEc:hhs:lunewp:2011_023

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Keywords: regional convergence; developing countries; growth; China;

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  1. Growth Convergence in China
    by UDADISI in UDADISI on 2013-02-09 02:58:00
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Cited by:
  1. Andersson , Fredrik N. G. & Ljungberg, Jonas, 2014. "Grain Market Integration in the Baltic Sea Region in the 19th Century," Working Papers 2014:3, Lund University, Department of Economics.
  2. Françoise Lemoine & Grégoire Mayo & Sandra Poncet & Deniz Ünal, 2014. "The Geographic Pattern of China's Growth and Convergence within Industry," Working Papers 2014-04, CEPII research center.

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