IDEAS home Printed from https://ideas.repec.org/p/diw/diwwpp/dp1124.html
   My bibliography  Save this paper

Are Geese Flying by Themselves inside China? An LSTR-SEM Approach to Income Convergence of Chinese Counties

Author

Listed:
  • Konstantin A. Kholodilin
  • Eric Girardin

Abstract

In this paper, we examine beta-convergence of real per-capita income of Chinese counties. We account for both the spatial dependences between counties and the possibility of different convergence regimes. The first feature is captured by the spatial error term, whereas the second one is modeled using the spatial logit smooth transition approach. Two groups of counties can be identified: 1) counties, which have relatively poor neighbors and tend to grow faster and converge, and 2) counties, which have relatively rich neighbors and tend to grow slower and hence fail to converge. The counties belonging to the first group are concentrated mainly in western interior provinces, such as Qinghai, Sichuan, Yunnan, western part of Xinjiang Uygur. The counties of the second group are located mainly in coastal regions. Whereas in the benchmark model the estimated convergence rate is 0.8% for unconditional regression and 1.7% for condtional regression, the alternative models produce the convergence rate of 1.3-1.5% for unconditional regressions and 2.3-2.6% for conditional regressions, which is quite close to the estimates reported typically in the literature.

Suggested Citation

  • Konstantin A. Kholodilin & Eric Girardin, 2011. "Are Geese Flying by Themselves inside China? An LSTR-SEM Approach to Income Convergence of Chinese Counties," Discussion Papers of DIW Berlin 1124, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp1124
    as

    Download full text from publisher

    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.372410.de/dp1124.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Roberto Casarin & Komla Mawulom Agudze & Monica Billio & Eric Girardin, 2014. "Growth-cycle phases in China�s provinces: A panel Markov-switching approach," Working Papers 2014:19, Department of Economics, University of Venice "Ca' Foscari".

    More about this item

    Keywords

    Chinese counties; income convergence; LSTR; spatial effects;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:diw:diwwpp:dp1124. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek). General contact details of provider: http://edirc.repec.org/data/diwbede.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.