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Opening up, Market Reform, and Convergence Clubs in China

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  • Rui Hao

Abstract

This paper evaluates the relationship between initial government policies and the emergence of convergence clubs in post‐reform China. We test the structural stability of a global convergence equation using China's provincial data over the period 1985–2000. We find that the provinces cluster around two basins of attraction defined by initial opening‐up. Domestic market reform exerts a positive and significant influence on provincial economic growth but has no threshold effect. The two convergence clubs exhibit strikingly different growth behaviors, suggesting that the roles of some growth‐promoting factors, such as human capital and infrastructure, depend on whether an openness threshold is passed.

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  • Rui Hao, 2008. "Opening up, Market Reform, and Convergence Clubs in China," Asian Economic Journal, East Asian Economic Association, vol. 22(2), pages 133-160, June.
    • Handle: RePEc:bla:asiaec:v:22:y:2008:i:2:p:133-160
    DOI: 10.1111/j.1467-8381.2008.00271.x-i1
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    3. Sayel Basel & R. Prabhakara Rao & K. U. Gopakumar, 2021. "Analysis of club convergence for economies: identification and testing using development indices," Asia-Pacific Journal of Regional Science, Springer, vol. 5(3), pages 885-908, October.
    4. Li, Qing & Vo, Long Hai & Wu, Yanrui, 2019. "Intangible capital distribution in China," Economic Systems, Elsevier, vol. 43(2), pages 1-1.
    5. Huang, Liangxiong & Ma, Minghui & Wang, Xianbin, 2022. "Clan culture and risk-taking of Chinese enterprises," China Economic Review, Elsevier, vol. 72(C).
    6. Zi, Cao & Qian, Meng & Baozhong, Gao, 2021. "The consumption patterns and determining factors of rural household energy: A case study of Henan Province in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 146(C).
    7. Qiaoli Xiao & Yue Wang, 2022. "Study on the Spatial Convergence Club and Growth Momentum of China’s Regional Economies," Sustainability, MDPI, vol. 14(19), pages 1-17, October.
    8. Weili Zhang & Jibin Fu & Quan Ju, 2020. "A study on the model of economic growth convergence in developing regions: an empirical analysis from Henan Province, China," Empirical Economics, Springer, vol. 59(2), pages 547-567, August.
    9. Weili Zhang & Wei Xu & Xiaoye Wang, 2019. "Regional convergence clubs in China: identification and conditioning factors," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(2), pages 327-350, April.
    10. José Villaverde & Adolfo Maza, 2012. "Chinese per Capita Income Distribution, 1992–2007: A Regional Perspective," Asian Economic Journal, East Asian Economic Association, vol. 26(4), pages 313-331, December.
    11. Cheong, Tsun Se & Wu, Yanrui, 2013. "Regional disparity, transitional dynamics and convergence in China," Journal of Asian Economics, Elsevier, vol. 29(C), pages 1-14.
    12. Vo, Duc Hong & Vo, Long Hai & Ho, Chi Minh, 2022. "Regional convergence of nonrenewable energy consumption in Vietnam," Energy Policy, Elsevier, vol. 169(C).

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