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Endogenous innovation growth theory and regional income convergence in China

  • 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)

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.

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Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 13 (2001)
Issue (Month): 2 ()
Pages: 153-168

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Handle: RePEc:wly:jintdv:v:13:y:2001:i:2:p:153-168
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