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Endogenous innovation growth theory and regional income convergence in China

Author

Listed:
  • Yingqi Wei

    (Department of Economics, University of Lancaster, Lancaster, UK)

  • Xiaming Liu

    (Aston Business School, Aston University, Birmingham, UK)

  • Haiyan Song

    (Department of Management Studies, University of Surrey, Guildford, UK)

  • Peter Romilly

    (School of Social and Health Sciences, University of Abertay Dundee, Dundee, UK)

Abstract

Endogenous innovation growth theory is tested by using panel data for 27 provinces across China. R&D expenditure and openness are added to the standard convergence regressions to control for different structural characteristics in each province. A standardized 't-bar' test for unit roots is applied to examine the properties of the data and identify a long-run relationship among the variables. By allowing for differences in the aggregate production function across regions, we find evidence of convergence. The empirical results support the endogenous innovation growth model in which regional per capita income can converge given technological diffusion, transfer and imitation. Copyright © 2001 John Wiley & Sons, Ltd.

Suggested Citation

  • Yingqi Wei & Xiaming Liu & Haiyan Song & Peter Romilly, 2001. "Endogenous innovation growth theory and regional income convergence in China," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(2), pages 153-168.
  • Handle: RePEc:wly:jintdv:v:13:y:2001:i:2:p:153-168
    DOI: 10.1002/jid.721
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    References listed on IDEAS

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    Cited by:

    1. Sailesh Tanna & Kitja Topaiboul, 2005. "Human Capital, Trade, FDI and Economic Growth in Thailand: What causes What?," DEGIT Conference Papers c010_046, DEGIT, Dynamics, Economic Growth, and International Trade.
    2. Reuter, Ulrich, 2006. "What Kind of Education Does China Need? The Impact of Educational Attainment on Local Growth and Disparities," WIDER Working Paper Series 127, World Institute for Development Economic Research (UNU-WIDER).
    3. Artelaris, Panagiotis & Arvanitidis, Paschalis & Petrakos, George, 2006. "Theoretical and Methodological Study on Dynamic Growth Regions and Factors Explaining their Growth Performance," Papers DYNREG02, Economic and Social Research Institute (ESRI).
    4. Lo, Dic & Hong, Fuhai & Li, Guicai, 2016. "Assessing the role of inward foreign direct investment in Chinese economic development, 1990–2007: Towards a synthesis of alternative views," Structural Change and Economic Dynamics, Elsevier, vol. 37(C), pages 107-120.
    5. repec:spr:anresc:v:58:y:2017:i:2:d:10.1007_s00168-016-0782-5 is not listed on IDEAS
    6. Gang Chen & Brett Inder & Bruce Hollingsworth, 2014. "Health Investment And Economic Output In Regional China," Contemporary Economic Policy, Western Economic Association International, vol. 32(2), pages 261-274, April.
    7. Zhou, Xianbo & Li, Kui-Wai & Li, Qin, 2011. "An analysis on technical efficiency in post-reform China," China Economic Review, Elsevier, vol. 22(3), pages 357-372, September.
    8. Chien-Chiang Lee & Chi-Chuan Lee & Chun-Ping Chang, 2015. "Globalization, Economic Growth and Institutional Development in China," Global Economic Review, Taylor & Francis Journals, vol. 44(1), pages 31-63, March.
    9. Zhang, Chuanguo & Zhuang, Lihuan, 2011. "The composition of human capital and economic growth: Evidence from China using dynamic panel data analysis," China Economic Review, Elsevier, vol. 22(1), pages 165-171, March.
    10. DOBSON, Steve & RAMLOGAN, Carlyn & STROBL, Eric, 2003. "Why do rates of convergence differ ? A meta-regression analysis," CORE Discussion Papers 2003020, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    11. Su, Yaqin & Liu, Zhiqiang, 2016. "The impact of foreign direct investment and human capital on economic growth: Evidence from Chinese cities," China Economic Review, Elsevier, vol. 37(C), pages 97-109.
    12. Stephen Dobson & Carlyn Ramlogan & Eric Strobl, 2006. "Why Do Rates Of Β-Convergence Differ? A Meta-Regression Analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(2), pages 153-173, May.
    13. Shu-Chen Chang, 2005. "The dynamic interactions among foreign direct investment, economic growth, exports and unemployment: evidence from Taiwan," Economic Change and Restructuring, Springer, vol. 38(3), pages 235-256, December.
    14. Dic Lo, 2004. "Assessing the Role of Foreign Direct Investment in China’s Economic Development: Macro Indicators and Insights from Sectoral-Regional Analyses," Working Papers 135, Department of Economics, SOAS, University of London, UK.
    15. Chi, Wei & Qian, Xiaoye, 2009. "The role of education in regional innovation activities and economic growth: spatial evidence from China," MPRA Paper 15779, University Library of Munich, Germany.
    16. Maza, Adolfo & Villaverde, José & Hierro, María, 2014. "Should cohesion policy focus on fostering R&D? Evidence from Spain," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 29, pages 139-164.
    17. Sergio J. Rey & Mark V. Janikas, 2005. "Regional convergence, inequality, and space," Journal of Economic Geography, Oxford University Press, vol. 5(2), pages 155-176, April.
    18. CHI, Wei, 2008. "The role of human capital in China's economic development: Review and new evidence," China Economic Review, Elsevier, vol. 19(3), pages 421-436, September.
    19. Sergio J. Rey & Mark V. Janikas, 2003. "Convergence and space," Urban/Regional 0311002, University Library of Munich, Germany, revised 16 Nov 2003.

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