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Explaining Spatial Convergence of China's Industrial Productivity

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  • Paul D. Deng
  • Gary H. Jefferson

Abstract

This paper investigates the conditions that may auger a reversal of China’s increasingly unequal levels of regional industrial productivity during China’s first two decades of economic reform. Using international and Chinese firm and industry data over the period 1995-2004, we estimate a productivity growth-technology gap reaction function. We find that as China’s coastal industry has closed the technology gap with the international frontier relative to interior regions, labor productivity growth in the coastal region has begun to slow in relation to the interior. This may serve as an early indicator of China’s initial movement toward reversing the widespread income inequality.
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Suggested Citation

  • Paul D. Deng & Gary H. Jefferson, 2011. "Explaining Spatial Convergence of China's Industrial Productivity," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 73, pages 818-832, December.
    • Handle: RePEc:bla:obuest:v:73:y:2011:i::p:818-832
    DOI: j.1468-0084.2011.00675.x
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    Cited by:

    1. Françoise Lemoine & Grégoire Mayo & Sandra Poncet & Deniz Ünal, 2014. "The Geographic Pattern of China's Growth and Convergence within Industry," Working Papers 2014-04, CEPII research center.
    2. MILOSAN, Alexandru-Ioan, 2013. "China'S Bubble," Academica Science Journal, Economica Series, Dimitrie Cantemir University, Faculty of Economical Science, vol. 2(3), pages 34-39, December.
    3. Lingyan Huang & Yani Wu & Qing Zheng & Qiming Zheng & Xinyu Zheng & Muye Gan & Ke Wang & AmirReza Shahtahmassebi & Jingsong Deng & Jihua Wang & Jing Zhang, 2018. "Quantifying the Spatiotemporal Dynamics of Industrial Land Uses through Mining Free Access Social Datasets in the Mega Hangzhou Bay Region, China," Sustainability, MDPI, vol. 10(10), pages 1-24, September.
    4. Grigorios Emvalomatis, 2017. "Is productivity diverging in the EU? Evidence from 11 Member States," Empirical Economics, Springer, vol. 53(3), pages 1171-1192, November.
    5. He, Ming & Chen, Yang & van Marrewijk, Charles, 2021. "The effects of urban transformation on productivity spillovers in China," Economic Modelling, Elsevier, vol. 95(C), pages 473-488.
    6. Li, Qing & Vo, Long Hai & Wu, Yanrui, 2019. "Intangible capital distribution in China," Economic Systems, Elsevier, vol. 43(2), pages 1-1.
    7. Lixing Li & Qihong Liu & Changyu Ren, 2022. "Firms Quasi‐dynamics in Chinese Manufacturing Industry," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(5), pages 102-127, September.
    8. Marian Rizov & Xufei Zhang, 2014. "Regional disparities and productivity in China: Evidence from manufacturing micro data," Papers in Regional Science, Wiley Blackwell, vol. 93(2), pages 321-339, June.
    9. Lemoine, Françoise & Poncet, Sandra & Ünal, Deniz, 2015. "Spatial rebalancing and industrial convergence in China," China Economic Review, Elsevier, vol. 34(C), pages 39-63.

    More about this item

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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