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Economic Reform, Growth and Convergence in China

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  • Maasoumi, Esfandiar

    ()
    (SMU)

  • Wang, Le

    (SMU)

Abstract

In this paper, we propose a new concept of convergence which is based on the metric entropy measure recently proposed by Granger et al. (2004) to investigate economic convergence in China. This entropy measure compares whole distributions of growth rates across individual provinces. Separately, based on this same entropy measure, we also implement cluster analysis to identify any convergence clubs. Our four main conclusions are: (1) while we certainly reject the null hypothesis that there exists a nation-wide convergence, we do ?nd that there exist convergence clubs for both the pre- and post-reform periods, (2) we ?nd a number of very small convergence clubs. In particular, there are seven and ?ve convergence clubs for the pre- and post-reform periods, respectively. (3) in comparing the number and size of convergence clubs for both the pre- and post-reform periods, it could be argued that the extent of convergence is more prevalent during the post-reform period than during the pre-reform period, (4) convergence groups cannot be characterized by such unique features as region or the extent of policy preference level that are com- monly used in the literature.

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Bibliographic Info

Paper provided by Southern Methodist University, Department of Economics in its series Departmental Working Papers with number 0602.

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Length: 26 pages
Date of creation: Mar 2006
Date of revision:
Handle: RePEc:smu:ecowpa:0602

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Postal: Department of Economics, P.O. Box 750496, Southern Methodist University, Dallas, TX 75275-0496
Phone: 214-768-2715
Fax: 214-768-1821
Web page: http://www.smu.edu/economics

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Keywords: convergence; growth; entropy; China; cluster analysis;

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References

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  1. Lixin Colin Xu & Heng-fu Zou, 2000. "Explaining the Changes of Income Distribution in China," CEMA Working Papers 473, China Economics and Management Academy, Central University of Finance and Economics.
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  3. Pedroni, Peter & Yao, James Yudong, 2006. "Regional income divergence in China," Journal of Asian Economics, Elsevier, vol. 17(2), pages 294-315, April.
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Citations

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Cited by:
  1. M. Herrerías, 2012. "Weighted convergence and regional growth in China: an alternative approach (1952–2008)," The Annals of Regional Science, Springer, vol. 49(3), pages 685-718, December.
  2. repec:hal:wpaper:halshs-00667467 is not listed on IDEAS
  3. Michael Funke & Hao Yu, 2009. "Economic Growth Across Chinese Provinces: In Search of Innovation-Driven Gains," Quantitative Macroeconomics Working Papers 20909, Hamburg University, Department of Economics.
  4. Hongyi Li & Huang Liang, 2010. "Health, education, and economic growth in East Asia," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing, vol. 3(2), pages 110-131, June.
  5. Jahan, Sumbul, 2013. "Does Convergence Exist?," MPRA Paper 48836, University Library of Munich, Germany.
  6. Jinzhao Chen, 2012. "Real Exchange Rate and Economic Growth: Evidence from Chinese Provincial Data (1992 - 2008)," PSE Working Papers halshs-00667467, HAL.
  7. Ma, Hengyun & Oxley, Les, 2012. "The emergence and evolution of regional convergence clusters in China's energy markets," Energy Economics, Elsevier, vol. 34(1), pages 82-94.
  8. Uzma Afzal, 2012. "Human Capital Convergence: Evidence from the Punjab," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(1), pages 45-61, Jan-June.
  9. LI, Hongyi & HUANG, Liang, 2009. "Health, education, and economic growth in China: Empirical findings and implications," China Economic Review, Elsevier, vol. 20(3), pages 374-387, September.
  10. Sumie Sato & Mototsugu Fukushige, 2010. "The Chinese Economy and Income Inequality among East Asian Countries," Discussion Papers in Economics and Business 10-06, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  11. Bandyopadhyay, Sanghamitra, 2012. "Convergence clubs in incomes across Indian states: Is there evidence of a neighbours’ effect?," Economics Letters, Elsevier, vol. 116(3), pages 565-570.

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