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Industrial Productivity Convergence in China

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  • Xuemei Bai
  • Gang Li

Abstract

This paper examines the convergence process of industrial productivity between Chinese regions. Both σ- and β-convergences are investigated using a panel data set of 30 provinces and autonomous regions over the period 1985-1999. Unconditional σ- and β-convergence methods fail to detect productivity convergence over the whole sample period, although they suggest convergence during a sub-period 1985-1990. The estimates of a human capital enhanced production function, with the constant return to scale constraint, show that productivity gaps between Chinese regions declined during 1985-1999 with a rate of convergence of around 1.3% per annum. Similar results are also found when the data are disaggregated into three broader geographic regions.

Suggested Citation

  • Xuemei Bai & Gang Li, 2004. "Industrial Productivity Convergence in China," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 2(2), pages 155-168.
  • Handle: RePEc:taf:jocebs:v:2:y:2004:i:2:p:155-168
    DOI: 10.1080/14765280410001684805
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    References listed on IDEAS

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    Cited by:

    1. Katz-Lavigne, Sarah G., 2017. "The renegotiation window: Resource contract renegotiations in the mining industry in Africa from 2000 to 2013," Resources Policy, Elsevier, vol. 51(C), pages 22-30.

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    Keywords

    Convergence; productivity; China; industry;

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