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Structural changes and regional disparity in China's inflation: a revisit

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  • Aviral Kumar Tiwari
  • Suresh K.G.

Abstract

The study re-examined the time series properties and regional disparities in Chinese inflation by extending the work of Chong, Zhang, and Feng (2011). For this purpose we employed the Lagrange Multiplier (LM) unit root test with one structural break and two structural breaks suggested by Lee and Strazicich (2003, 2004) and a recently developed ADF type unit root test with two structural breaks of Narayan and Popp (2010). We found that national, urban and rural series of the overall inflation series, clothing, and food, national series of education and residence and the rural series of residence and education are stationary. We also found regional disparity in Chinese inflation, but the disparities existed only in education inflation series.

Suggested Citation

  • Aviral Kumar Tiwari & Suresh K.G., 2012. "Structural changes and regional disparity in China's inflation: a revisit," China Economic Journal, Taylor & Francis Journals, vol. 5(1), pages 17-28.
    • Handle: RePEc:taf:rcejxx:v:5:y:2012:i:1:p:17-28
    DOI: 10.1080/17538963.2011.698087
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