Spatial spillover and regional economic growth in China
This paper investigates the spatial structure of the provincial economic growth and the spatial spillover in China from 1998 to 2008. First, we apply Moran's index to detect the positive spatial autocorrelations across the provinces of China. Second, we build a new economic geography model and the role of market potential in promoting regional income growth is highlighted. Third, two measures of market potential are constructed and a spatial error model is adopted to obtain the estimations, considering spatial autocorrelation. Controlling for major inputs, such as labor, capital, and human capital, the market potential continues to promote substantial regional growth. On average, an increase of 10 percentage points in the market potential increases the regional GDP per capita growth by 3–5 percentage points.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Amiti, Mary & Javorcik, Beata, 2005.
"Trade Costs and Location of Foreign Firms in China,"
CEPR Discussion Papers
4978, C.E.P.R. Discussion Papers.
- Amiti, Mary & Smarzynska Javorcik, Beata, 2008. "Trade costs and location of foreign firms in China," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 129-149, February.
- International Monetary Fund, 2005. "Trade Costs and Location of Foreign Firms in China," IMF Working Papers 05/55, International Monetary Fund.
- Amiti, Mary & Javorcik, Beata Smarzynska, 2005. "Trade costs and location of foreign firms in China," Policy Research Working Paper Series 3564, The World Bank.
- Alwyn Young, 2000. "The Razor's Edge: Distortions and Incremental Reform in the People's Republic of China," NBER Working Papers 7828, National Bureau of Economic Research, Inc.
- Yao, Shujie & Zhang, Zongyi, 2001. "On Regional Inequality and Diverging Clubs: A Case Study of Contemporary China," Journal of Comparative Economics, Elsevier, vol. 29(3), pages 466-484, September.
- Stephen Redding & Anthony J. Venables, 2001.
"Economic Geography and International Inequality,"
CEP Discussion Papers
dp0495, Centre for Economic Performance, LSE.
- Stephen Redding & Anthony J. Venables, 2001. "Economic Geography and International Inequality," International Trade 0103003, EconWPA.
- Redding, Stephen J. & Venables, Anthony J, 2000. "Economic Geography and International Inequality," CEPR Discussion Papers 2568, C.E.P.R. Discussion Papers.
- Stephen Redding & Anthony J. Venables, 2001. "Economic geography and international inequality," LSE Research Online Documents on Economics 3714, London School of Economics and Political Science, LSE Library.
- Long Gen Ying, 2000. "articles: Measuring the spillover effects: Some Chinese evidence," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(1), pages 75-89.
- Sandra Poncet, 2005.
"A Fragmented China: Measure and Determinants of Chinese Domestic Market Disintegration,"
Review of International Economics,
Wiley Blackwell, vol. 13(3), pages 409-430, 08.
- Sandra PONCET, 2002. "A Fragmented China. Measure and Determinants of Chinese Domestic Market Disintegration," Working Papers 200221, CERDI.
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- Zheng Song & Kjetil Storesletten & Fabrizio Zilibotti, 2011.
"Growing Like China,"
American Economic Review,
American Economic Association, vol. 101(1), pages 196-233, February.
- Q. Zhang & B. Felmingham, 2002. "The Role of FDI, Exports and Spillover Effects in the Regional Development of China," Journal of Development Studies, Taylor & Francis Journals, vol. 38(4), pages 157-178.
- H. Hanson, Gordon, 2005.
"Market potential, increasing returns and geographic concentration,"
Journal of International Economics,
Elsevier, vol. 67(1), pages 1-24, September.
- Gordon H. Hanson, 1998. "Market Potential, Increasing Returns, and Geographic Concentration," NBER Working Papers 6429, National Bureau of Economic Research, Inc.
- Hanson, G.H., 1999. "`Market Potential, Increasing Returns, and Geographic Concentration," Working Papers 439, Research Seminar in International Economics, University of Michigan.
- Chong-En Bai & Yingjuan Du & Zhigang Tao & Sarah Y. Tong, 2003.
"Local Protectionism and Regional Specialization: Evidence from China’s Industries,"
William Davidson Institute Working Papers Series
2003-565, William Davidson Institute at the University of Michigan.
- Bai, Chong-En & Du, Yingjuan & Tao, Zhigang & Tong, Sarah Y., 2004. "Local protectionism and regional specialization: evidence from China's industries," Journal of International Economics, Elsevier, vol. 63(2), pages 397-417, July.
- Nicolaas Groenewold & Guoping Lee & Anping Chen, 2005.
"Regional Output Spillovers in China: Estimates from a VAR Model,"
Economics Discussion / Working Papers
05-05, The University of Western Australia, Department of Economics.
- Nicolaas Groenewold & Lee Guoping & Chen Anping, 2007. "Regional output spillovers in China: Estimates from a VAR model," Papers in Regional Science, Wiley Blackwell, vol. 86(1), pages 101-122, 03.
- Chen, Jian & Fleisher, Belton M., 1996. "Regional Income Inequality and Economic Growth in China," Journal of Comparative Economics, Elsevier, vol. 22(2), pages 141-164, April.
- Brun, J. F. & Combes, J. L. & Renard, M. F., 2002.
"Are there spillover effects between coastal and noncoastal regions in China?,"
China Economic Review,
Elsevier, vol. 13(2-3), pages 161-169.
- Jean-François BRUN & Jean-Louis COMBES & Mary-Françoise RENARD, 2001. "Are There Spillover Effects Between Coastal and Non-Coastal Regions in China ?," Working Papers 200113, CERDI.
- Carsten A. Holz, 2009. "No Razor's Edge: Reexamining Alwyn Young's Evidence for Increasing Interprovincial Trade Barriers in China," The Review of Economics and Statistics, MIT Press, vol. 91(3), pages 599-616, August.
- Hering, Laura & Poncet, Sandra, 2009.
"The impact of economic geography on wages: Disentangling the channels of influence,"
China Economic Review,
Elsevier, vol. 20(1), pages 1-14, March.
- Laura Hering & Sandra Poncet, 2009. "The impact of economic geography on wages: Disentangling the channels of influence," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00633816, HAL.
- Laura Hering & Sandra Poncet, 2008. "The Impact of Economic Geography on Wages: Disentangling the Channels of Influence," Working Papers 2008-20, CEPII research center.
- Groenwold, Nicolaas & Lee, Guoping & Chen, Anping, 2008. "Inter-regional spillovers in China: The importance of common shocks and the definition of the regions," China Economic Review, Elsevier, vol. 19(1), pages 32-52, March.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Jiang, Yanqing, 2011. "Understanding openness and productivity growth in China: An empirical study of the Chinese provinces," China Economic Review, Elsevier, vol. 22(3), pages 290-298, September.
- Kuo, Chun-Chien & Yang, Chih-Hai, 2008. "Knowledge capital and spillover on regional economic growth: Evidence from China," China Economic Review, Elsevier, vol. 19(4), pages 594-604, December.
- Long Gen Ying, 2003. "Understanding China’s recent growth experience: A spatial econometric perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 37(4), pages 613-628, December.
- Alwyn Young, 2000. "The Razor's Edge: Distortions and Incremental Reform in the People's Republic of China," The Quarterly Journal of Economics, Oxford University Press, vol. 115(4), pages 1091-1135.
- Bai, Chong-En & Lu, Jiangyong & Tao, Zhigang, 2010. "Capital or knowhow: The role of foreign multinationals in Sino-foreign joint ventures," China Economic Review, Elsevier, vol. 21(4), pages 629-638, December.
When requesting a correction, please mention this item's handle: RePEc:eee:chieco:v:23:y:2012:i:4:p:982-990. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.