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Explaining Spatial Convergence of China’s Industrial Productivity

  • Paul Deng


    (Department of Economics, Copenhagen Business School)

  • Gary Jefferson


    (Department of Economics, Brandeis University)

This paper investigates the conditions that may auger a reversal of China’s increasingly unequal levels of regional industrial productivity during China’s first two decades of economic reform. Using international and Chinese firm and industry data over the period 1995-2004, we estimate a productivity growth-technology gap reaction function. We find that as China’s coastal industry has closed the technology gap with the international frontier relative to interior regions, labor productivity growth in the coastal region has begun to slow in relation to the interior. This may serve as an early indicator of China’s initial movement toward reversing the widespread income inequality.

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Paper provided by Brandeis University, Department of Economics and International Businesss School in its series Working Papers with number 32.

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Length: 31 pages
Date of creation: Aug 2011
Date of revision:
Handle: RePEc:brd:wpaper:32
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  1. Gary H. Jefferson & Albert G. Z. Hu & Jian Su, 2006. "The Sources and Sustainability of China's Economic Growth," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 37(2), pages 1-60.
  2. Szirmai, Adam & Ruoen, Ren, 2000. "Comparative performance in Chinese manufacturing, 1980-1992," China Economic Review, Elsevier, vol. 11(1), pages 16-53.
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