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Time series analysis of income convergence in China

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  • Hening Liu
  • Le Wang

Abstract

In this article, we examine both pre- and post-reform economic convergence behaviour in China using the time-series procedures developed in the Hobijn and Franses (2000). Our results are striking: First, we find a number of extremely small convergence clubs for both the pre- and post-reform periods, and these clubs cannot be characterized by geography or the extent of policy preference level. Second, our results show that economic reform led to more divergence .

Suggested Citation

  • Hening Liu & Le Wang, 2010. "Time series analysis of income convergence in China," Applied Economics Letters, Taylor & Francis Journals, vol. 17(1), pages 25-29, January.
    • Handle: RePEc:taf:apeclt:v:17:y:2010:i:1:p:25-29
    DOI: 10.1080/13504850701719728
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    References listed on IDEAS

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    1. 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.
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    5. Bart Hobijn & Philip Hans Franses, 2000. "Asymptotically perfect and relative convergence of productivity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(1), pages 59-81.
    6. Newey, Whitney & West, Kenneth, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 33(1), pages 125-132.
    7. Kyoo il Kim, 2007. "Uniform convergence rate of the seminonparametric density estimator and testing for similarity of two unknown densities," Econometrics Journal, Royal Economic Society, vol. 10(1), pages 1-34, March.
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    9. 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.
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    Cited by:

    1. Cheong, Tsun Se & Wu, Yanrui, 2013. "Regional disparity, transitional dynamics and convergence in China," Journal of Asian Economics, Elsevier, vol. 29(C), pages 1-14.
    2. Mustafa Emre Ertu rul & Kemaletttin Tanr seven, 2018. "Analysis of Income Convergence in G-20 Countries with Structural Break Unit Root Test," International Journal of Economics and Financial Issues, Econjournals, vol. 8(2), pages 344-349.

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