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Regional Diversity and Sources of Economic Growth in China

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  • Yuko Arayama
  • Katsuya Miyoshi

Abstract

Regional diversity in the process of economic growth is the major concern in this paper. We will try to identify its sources for growth and to specify production functions in each province by estimating translog production function. This paper clarifies the following four facts: First, capital accumulation was a major source for growth in the earlier stage of the Chinese economy, especially in the eastern coastal region. Unexpectedly, capital accumulation is losing its ground over the years. Second, the employment structure of the economy in the eastern region has changed significantly and the shares of workers in the secondary and tertiary industries increased until 1992. Since 1992, these figures have not changed significantly despite China's continuous economic high growth. Third, four distinguishable regional growth patterns have contributed to China's economic growth. Finally, production technologies in each province vary both in the direction of factor intensity and in the elasticity of substitution between inputs.

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  • Yuko Arayama & Katsuya Miyoshi, 2004. "Regional Diversity and Sources of Economic Growth in China," The World Economy, Wiley Blackwell, vol. 27(10), pages 1583-1607, November.
    • Handle: RePEc:bla:worlde:v:27:y:2004:i:10:p:1583-1607
    DOI: 10.1111/j.1467-9701.2004.00668.x
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    Cited by:

    1. Heshmati, Almas & Kumbhakar, Subal C., 2010. "Technical Change and Total Factor Productivity Growth: The Case of Chinese Provinces," IZA Discussion Papers 4784, Institute of Labor Economics (IZA).
    2. Chi, Wei & Qian, Xiaoye, 2009. "The role of education in regional innovation activities and economic growth: spatial evidence from China," MPRA Paper 15779, University Library of Munich, Germany.
    3. Wei Shui & Jianping Bai & Su Zhang & Yiping Chen, 2014. "Analysis of the Influencing Factors on Resettled Farmer’s Satisfaction under the Policy of the Balance between Urban Construction Land Increasing and Rural Construction Land Decreasing: A Case Study o," Sustainability, MDPI, vol. 6(12), pages 1-14, November.
    4. Xu Tang & Benjamin C. McLellan & Simon Snowden & Baosheng Zhang & Mikael Höök, 2015. "Dilemmas for China: Energy, Economy and Environment," Sustainability, MDPI, vol. 7(5), pages 1-13, May.
    5. Thomas Gries & Margarete Redlin, 2008. "International Integration and Regional Development in China," WIDER Working Paper Series RP2008-66, World Institute for Development Economic Research (UNU-WIDER).
    6. Subal C. Kumbhakar, 2017. "Do urbanization and public expenditure affect productivity growth? The case of Chinese Provinces," Indian Economic Review, Springer, vol. 52(1), pages 127-156, December.
    7. Yingying Zhou & Yaru Xu & Chuanzhe Liu & Zhuoqing Fang & Xinyue Fu & Mingzhao He, 2019. "The Threshold Effect of China’s Financial Development on Green Total Factor Productivity," Sustainability, MDPI, vol. 11(14), pages 1-23, July.
    8. Shiu, Alice & Heshmati, Almas, 2006. "Technical Change and Total Factor Productivity Growth for Chinese Provinces: A Panel Data Analysis," Ratio Working Papers 98, The Ratio Institute.
    9. Zhang, Chuanguo & Zhuang, Lihuan, 2011. "The composition of human capital and economic growth: Evidence from China using dynamic panel data analysis," China Economic Review, Elsevier, vol. 22(1), pages 165-171, March.
    10. Mototsugu Fukushige & Yingxin Shi, 2022. "Quantile regression approach for measuring production inefficiency with empirical application to the primary production sector for the Xinjiang Production and Construction Corps in China," Asia-Pacific Journal of Regional Science, Springer, vol. 6(2), pages 777-805, June.
    11. Flávio Vilela Vieira & Michele Polline Veríssimo, 2005. "Crescimento Econômico De Longo Prazo Na China: Uma Investigação Econométrica," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33rd Brazilian Economics Meeting] 067, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    12. CHI, Wei, 2008. "The role of human capital in China's economic development: Review and new evidence," China Economic Review, Elsevier, vol. 19(3), pages 421-436, September.
    13. T. Gries & M. Redlin, 2011. "International integration and the determinants of regional development in China," Economic Change and Restructuring, Springer, vol. 44(1), pages 149-177, April.
    14. Henderson, Daniel J. & Tochkov, Kiril & Badunenko, Oleg, 2007. "A drive up the capital coast? Contributions to post-reform growth across Chinese provinces," Journal of Macroeconomics, Elsevier, vol. 29(3), pages 569-594, September.
    15. Tuan, Chyau & Ng, Linda F.Y. & Zhao, Bo, 2009. "China's post-economic reform growth: The role of FDI and productivity progress," Journal of Asian Economics, Elsevier, vol. 20(3), pages 280-293, May.
    16. Minzhe Du & Bing Wang & Yanrui Wu, 2014. "Sources of China’s Economic Growth: An Empirical Analysis Based on the BML Index with Green Growth Accounting," Sustainability, MDPI, vol. 6(9), pages 1-22, September.
    17. Emanuele Felice & Iacopo Odoardi & Dario D’Ingiullo, 2023. "The Chinese Inland-Coastal Inequality: The Role of Human Capital and the 2007–2008 Crisis Watershed," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(2), pages 761-788, July.
    18. Gao, Yuning & Zhang, Meichen & Zheng, Jinghai, 2021. "Accounting and determinants analysis of China's provincial total factor productivity considering carbon emissions," China Economic Review, Elsevier, vol. 65(C).
    19. Li, Chenhui & Lian, Xubei & Zhang, Zhi, 2018. "Public education expenditure, institution development, and regional innovations: An empirical evidence from China," Economics Discussion Papers 2018-23, Kiel Institute for the World Economy (IfW Kiel).
    20. Jiancui LIU & Shilin ZHENG, 2018. "The Origins of Productivity Change and Economic Growth in China’s Cities between the Years 2001 and 2014," Chinese Journal of Urban and Environmental Studies (CJUES), World Scientific Publishing Co. Pte. Ltd., vol. 6(02), pages 1-27, June.
    21. Yuheng Li & Xun Wang & Hans Westlund & Yansui Liu, 2015. "Physical Capital, Human Capital, and Social Capital: The Changing Roles in China's Economic Growth," Growth and Change, Wiley Blackwell, vol. 46(1), pages 133-149, March.

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