A Spatial Investigation of σ-Convergence in China
Abstract
Using techniques of spatial econometrics, this paper investigates σ-convergence of provincial real per capita gross domestic product (GDP) in China. The empirical evidence concludes that spatial dependence across regions is strong enough to distort the traditional measure of σ-convergence. This study focuses on the variation of per capita GDP that is dependent on the development processes of neighboring provinces and cities. This refinement of the conditional σ-convergence model specification allows for analysis of spatial dependence in the mean and variance. The corrected measure of σ-convergence in China indicates a lower level of dispersion in the economic development process. This implies a smaller divergence in real per capita GDP, although convergence across regions is still a challenging goal to achieve in the 2000s.Download Info
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Paper provided by Institute of Economic Research, Hitotsubashi University in its series Hi-Stat Discussion Paper Series with number d05-155.
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Date of creation: Mar 2006
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Handle: RePEc:hst:hstdps:d05-155
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For corrections or technical questions regarding this item, or to correct its listing, contact: (Tatsuji Makino).
Related research
Keywords: σ-Convergence; Moran's index; spatial dependence; spatial lag;Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
- R11 - Urban, Rural, Regional 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-2006-04-29 (All new papers)
- NEP-CNA-2006-04-29 (China)
- NEP-GEO-2006-04-29 (Economic Geography)
- NEP-SEA-2006-04-29 (South East Asia)
- NEP-TRA-2006-04-29 (Transition Economics)
- NEP-URE-2006-04-29 (Urban & Real Estate Economics)
References
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- Chen, Jian & Fleisher, Belton M., 1996. "Regional Income Inequality and Economic Growth in China," Journal of Comparative Economics, Elsevier, vol. 22(2), pages 141-164, April.
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