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Convergence and transition auspice of Chinese regional growth

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  • Zheng Wang

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  • Zhaopan Ge

Abstract

This paper reconsiders the question of regional convergence in China. Barro’s convergence model and Theil’s regional inequality index are applied in the study. Analytical results reject the absolute convergence hypothesis in the Chinese case, but suggest a conditional convergence pattern. As for China as one system, it is further discovered that there exists a complex phenomenon that the three regions, the east, the mid and the west, converge to different equilibria respectively. Therefore, the mid and the west break through the existing system structure to reach the high level like that of the east is a crucial task of Chinese economic development. A detailed inversed U-shape analysis leads to two important findings. First, it discovers that the regional disparities between the east region and the rest of China are widening, while the regional disparity between the mid and the west is shrinking. Second, the Chinese regional economy has reached the critical point of divergence-convergence transition in terms of stages of national economic development according to Williamson’s theoretical model. This gives the state government some room for doing something to make the convergence happen at an early possible time. Copyright Springer-Verlag 2004

Suggested Citation

  • Zheng Wang & Zhaopan Ge, 2004. "Convergence and transition auspice of Chinese regional growth," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(4), pages 727-739, December.
  • Handle: RePEc:spr:anresc:v:38:y:2004:i:4:p:727-739
    DOI: 10.1007/s00168-003-0184-3
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    Citations

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    Cited by:

    1. 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).
    2. Chen, Anping & Groenewold, Nicolaas, 2013. "Does investment allocation affect the inter-regional output gap in China? A time-series investigation," China Economic Review, Elsevier, vol. 26(C), pages 197-206.
    3. Emiliano Giudici & André Mollick, 2008. "Convergence in the Eastern Caribbean States," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(4), pages 893-909, December.
    4. Ryohei Nakamura & Masahiro Taguchi, 2011. "Agglomeration and Institutional Effects on Dynamics in Regional Disparities: Experience from Poland and Japan," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 25.

    More about this item

    Keywords

    R11; O18; O53;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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