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Industrial Productivity Convergence in China

  • Xuemei Bai
  • Gang Li
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    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.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/14765280410001684805
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    Article provided by Taylor & Francis Journals in its journal Journal of Chinese Economic and Business Studies.

    Volume (Year): 2 (2004)
    Issue (Month): 2 ()
    Pages: 155-168

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    Handle: RePEc:taf:jocebs:v:2:y:2004:i:2:p:155-168
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    1. Xu, Lixin Colin & Zou, Heng-fu, 2000. "Explaining the changes of income distribution in China," China Economic Review, Elsevier, vol. 11(2), pages 149-170, December.
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    7. Alan McCunn & Wallace E. Huffman, 2000. "Convergence in U.S. Productivity Growth for Agriculture: Implications of Interstate Research Spillovers for Funding Agricultural Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 370-388.
    8. repec:dgr:uvatin:19990065 is not listed on IDEAS
    9. Barro, Robert J & Lee, Jong Wha, 1996. "International Measures of Schooling Years and Schooling Quality," American Economic Review, American Economic Association, vol. 86(2), pages 218-23, May.
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