Growth of GRP in Chinese Provinces. A Test for Spatial Spillovers
AbstractThis paper examines the provincial pattern of growth in China during the period 1985–2000, testing the hypothesis that provinces with similar growth rates are more spatially clustered than would be expected by chance. The provincial economic growth is explained by the distribution of industrial enterprises, foreign direct investment, infrastructure, and governmental preferential policies. The neoclassical hypothesis of convergence is also tested. Indications of unconditional convergence does occur during the periods 1985–2000 and 1985–1990. In addition, conditional convergence is found during the sub-period 1990–1995. Evidence of spatial dependence between adjacent provinces has also been established, and in the econometric part, solved by a spatial lag, or alternatively a spatial error term, in the growth equation. Keywords: GRP-growth, Chinese provinces, Spatial dependence Classification [JEL]: O18, R11, R12
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Find related papers by JEL classification:
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-11-09 (All new papers)
- NEP-GEO-2005-11-09 (Economic Geography)
- NEP-SEA-2005-11-09 (South East Asia)
- NEP-TRA-2005-11-09 (Transition Economics)
- NEP-URE-2005-11-09 (Urban & Real Estate Economics)
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