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Regional economic performance in China

Author

Listed:
  • Ajit Bhalla
  • Shujie Yao
  • Zongyi Zhang

Abstract

This paper investigates convergence patterns among China's provinces using GDP data for the period 1952-97. We analyze convergence behaviour on the basis of Markov chains proposed by Quah (1993) and the generalized entropy decomposition proposed by Shorrocks (1980, 1984). Both sets of results show similar evidence of convergence within the pre-defined geo-economic sub-regions, but no evidence is found of convergence between the sub-regions. This finding has important policy implications for regional economic development in China. Copyright (c)The European Bank for Reconstruction and Development, 2003.

Suggested Citation

  • Ajit Bhalla & Shujie Yao & Zongyi Zhang, 2003. "Regional economic performance in China," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(1), pages 25-39, March.
  • Handle: RePEc:bla:etrans:v:11:y:2003-03:i:1:p:25-39
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    References listed on IDEAS

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    1. Dennis Tao Yang, 1999. "Urban-Biased Policies and Rising Income Inequality in China," American Economic Review, American Economic Association, vol. 89(2), pages 306-310, May.
    2. Jian, Tianlun & Sachs, Jeffrey D. & Warner, Andrew M., 1996. "Trends in regional inequality in China," China Economic Review, Elsevier, vol. 7(1), pages 1-21.
    3. Anthony F. Shorrocks & James E. Foster, 1987. "Transfer Sensitive Inequality Measures," Review of Economic Studies, Oxford University Press, vol. 54(3), pages 485-497.
    4. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-1385, November.
    5. Aki Kangasharju, 1999. "Relative Economic Performance in Finland: Regional Convergence, 1934-1993," Regional Studies, Taylor & Francis Journals, vol. 33(3), pages 207-217.
    6. Gundlach, Erich, 1997. "Regional convergence of output per worker in China: A neoclassical interpretation," Open Access Publications from Kiel Institute for the World Economy 1765, Kiel Institute for the World Economy (IfW).
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    Cited by:

    1. Herrerias, M.J. & Ordoñez, J., 2012. "New evidence on the role of regional clusters and convergence in China (1952–2008)," China Economic Review, Elsevier, vol. 23(4), pages 1120-1133.
    2. Chun-Yu Ho & Dan Li, 2010. "Spatial Dependence and Divergence across Chinese Cities," Review of Development Economics, Wiley Blackwell, vol. 14(2), pages 386-403, May.
    3. Qinghua Zhang & Heng-fu Zou, 2012. "Regional Inequality in Contemporary China," Annals of Economics and Finance, Society for AEF, vol. 13(1), pages 113-137, May.
    4. Chun-Yu Ho & Dan Li, 2009. "The nexus of income and size distribution of Chinese cities, 1984-2003," Applied Economics Letters, Taylor & Francis Journals, vol. 16(17), pages 1677-1682.
    5. PareshKumar Narayan & Seema Narayan, 2008. "Do Permanent Shocks Explain Income Levels? A Common Cycle-Common Trend Analysis Of Regional Income Levels For China," Pacific Economic Review, Wiley Blackwell, vol. 13(5), pages 656-662, December.
    6. Bystrom, Hans N.E. & Olofsdotter, Karin & Soderstrom, Lars, 2005. "Is China an optimum currency area?," Journal of Asian Economics, Elsevier, vol. 16(4), pages 612-634, August.
    7. Chun-Yu Ho & Dan Li, 2007. "Catching Up or Falling Behind? Income Distribution of Chinese Cities," Boston University - Department of Economics - Working Papers Series WP2007-22, Boston University - Department of Economics.
    8. Aroca, Patricio & Guo, Dong & Hewings, Geoffrey J.D., 2006. "Spatial Convergence in China: 1952-99," WIDER Working Paper Series 089, World Institute for Development Economic Research (UNU-WIDER).
    9. M. Herrerías, 2012. "Weighted convergence and regional growth in China: an alternative approach (1952–2008)," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(3), pages 685-718, December.
    10. Maria Jesus Herrerias & Javier Ordóñez, 2014. "Stochastic Regional Convergence in China: The Role of Regional Clusters in a Nonlinear Perspective (1952–2007)," Pacific Economic Review, Wiley Blackwell, vol. 19(2), pages 153-169, May.
    11. Curran, Declan & Funke, Michael & Wang, Jue, 2007. "Economic growth across space and time : subprovincial evidence from mainland China," BOFIT Discussion Papers 21/2007, Bank of Finland, Institute for Economies in Transition.

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