Income Inequality between Chinese Regions: Newfound Harmony or Continued Discord?
This paper develops an improved test of economic convergence or divergence using time series methods. The usefulness of the method is illustrated in an analysis of the growth pattern between Chinese regions in 1952–2007. Comparing all combinations of regional pairs, the analysis yields support for economic divergence in roughly half of the cases. In the other half, we instead find that regions have grown while maintaining stable income differences. As such, the results show the co-existence of divergence and conditional convergence among China's regions.
|Date of creation:||11 May 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden|
Phone: +46 8 665 4500
Fax: +46 8 665 4599
Web page: http://www.ifn.se/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chen, Jian & Fleisher, Belton M., 1996. "Regional Income Inequality and Economic Growth in China," Journal of Comparative Economics, Elsevier, vol. 22(2), pages 141-164, April.
- Perron, P, 1993. "Erratum [The Great Crash, the Oil Price Shock and the Unit Root Hypothesis]," Econometrica, Econometric Society, vol. 61(1), pages 248-49, January.
- Dowrick, Steve & Nguyen, Duc-Tho, 1989. "OECD Comparative Economic Growth 1950-85: Catch-Up and Convergence," American Economic Review, American Economic Association, vol. 79(5), pages 1010-30, December.
- Perron, Pierre, 1989.
"The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis,"
Econometric Society, vol. 57(6), pages 1361-1401, November.
- Perron, P, 1988. "The Great Crash, The Oil Price Shock And The Unit Root Hypothesis," Papers 338, Princeton, Department of Economics - Econometric Research Program.
- Maasoumi, Esfandiar & Wang, Le, 2006.
"Economic Reform, Growth and Convergence in China,"
Departmental Working Papers
0602, Southern Methodist University, Department of Economics.
- Bernard, Andrew B & Durlauf, Steven N, 1995.
"Convergence in International Output,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 10(2), pages 97-108, April-Jun.
- Josep Lluis Carrion-I-Silvestre & Vicente German-Soto, 2007. "Stochastic Convergence amongst Mexican States," Regional Studies, Taylor & Francis Journals, vol. 41(4), pages 531-541.
- Barro, Robert J. & Sala-i-Martin, Xavier, 1995.
"Technological Diffusion, Convergence and Growth,"
CEPR Discussion Papers
1255, C.E.P.R. Discussion Papers.
- Robert J. Barro & Xavier Sala-i-Martin, 1995. "Technological diffusion, convergence and growth," Economics Working Papers 116, Department of Economics and Business, Universitat Pompeu Fabra.
- Sala-i-martin, X. & Barro, R.J., 1995. "technological Diffusion, Convergence and Growth," Papers 735, Yale - Economic Growth Center.
- Robert J. Barro & Xavier Sala-i-Martin, 1995. "Technological Diffusion, Convergence, and Growth," NBER Working Papers 5151, National Bureau of Economic Research, Inc.
- Melvyn Weeks & James Yudong Yao, 2003. "Provincial Conditional Income Convergence in China, 1953-1997: A Panel Data Approach," Econometric Reviews, Taylor & Francis Journals, vol. 22(1), pages 59-77, February.
- Perron, P., 1994.
"Further Evidence on Breaking Trend Functions in Macroeconomic Variables,"
Cahiers de recherche
9421, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Perron, Pierre, 1997. "Further evidence on breaking trend functions in macroeconomic variables," Journal of Econometrics, Elsevier, vol. 80(2), pages 355-385, October.
- Perron, P., 1994. "Further Evidence on Breaking Trend Functions in Macroeconomic Variables," Cahiers de recherche 9421, Universite de Montreal, Departement de sciences economiques.
- Perron, P., 1990. "Further Evidence On Breaking Trend Functions In Macroeconomics Variables," Papers 350, Princeton, Department of Economics - Econometric Research Program.
- Quah, Danny, 1993.
"Galton's Fallacy and Tests of the Convergence Hypothesis,"
CEPR Discussion Papers
820, C.E.P.R. Discussion Papers.
- Quah, Danny, 1993. " Galton's Fallacy and Tests of the Convergence Hypothesis," Scandinavian Journal of Economics, Wiley Blackwell, vol. 95(4), pages 427-43, December.
- Takashi Matsuki & Ryoichi Usami, 2009. "China's regional convergence in panels with multiple structural breaks," Applied Economics, Taylor & Francis Journals, vol. 43(7), pages 873-890.
- Westerlund, Joakim & Edgerton, David L. & Opper, Sonja, 2010. "Why is Chinese provincial output diverging?," Journal of Asian Economics, Elsevier, vol. 21(4), pages 333-344, August.
- King, Alan & Ramlogan-Dobson, Carlyn, 2011. "Nonlinear time-series convergence: The role of structural breaks," Economics Letters, Elsevier, vol. 110(3), pages 238-240, March.
- Perron, Pierre, 1990.
"Testing for a Unit Root in a Time Series with a Changing Mean,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 8(2), pages 153-62, April.
- Perron, P., 1989. "Testing For A Unit Root In A Time Series With A Changing Mean," Papers 347, Princeton, Department of Economics - Econometric Research Program.
- Pei-Chien Lin & Chun-Hung Lin & I-Ling Ho, 2013. "Regional convergence or divergence in China? Evidence from unit root tests with breaks," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(1), pages 223-243, February.
- Evans, Paul & Kim, Ji Uk, 2011. "Stochastic convergence of the catch-up rate and multiple structural breaks in Asian countries," Economics Letters, Elsevier, vol. 111(3), pages 260-263, June.
- Wei Zou & Hao Zhou, 2007. "Classification of Growth Clubs and Convergence: Evidence from Panel Data in China, 1981-2004," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 15(5), pages 91-106.
- Robert J. Barro, 1989.
"Economic Growth in a Cross Section of Countries,"
NBER Working Papers
3120, National Bureau of Economic Research, Inc.
- Andrew B. Bernard & Steven N. Durlauf, 1994.
"Interpreting Tests of the Convergence Hypothesis,"
NBER Technical Working Papers
0159, National Bureau of Economic Research, Inc.
- Jian, T & Sachs, J-D & Warner, A-M, 1995.
"Trends in Regional Inequality in China,"
518, Harvard - Institute for International Development.
- Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-85, December.
- Andrew B. Bernard & Steven N. Durlauf, 1991. "Convergence of International Output Movements," NBER Working Papers 3717, National Bureau of Economic Research, Inc.
- Carvalho, Vasco M. & Harvey, Andrew C., 2005.
"Growth, cycles and convergence in US regional time series,"
International Journal of Forecasting,
Elsevier, vol. 21(4), pages 667-686.
- Vasco M.Carvalho & Andrew C.Harvey, 2002. "Growth, Cycles and Convergence in US Regional Time Series," Cambridge Working Papers in Economics 0221, Faculty of Economics, University of Cambridge.
- Pedroni, Peter & Yao, James Yudong, 2006.
"Regional income divergence in China,"
Journal of Asian Economics,
Elsevier, vol. 17(2), pages 294-315, April.
- N. Gregory Mankiw & David Romer & David N. Weil, 1992.
"A Contribution to the Empirics of Economic Growth,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 107(2), pages 407-437.
- Evans, P, 1996.
"Using Panel Data to Evaluate Growth Theories,"
ISER Discussion Paper
0397, Institute of Social and Economic Research, Osaka University.
- Martin Raiser, 1998. "Subsidising inequality: Economic reforms, fiscal transfers and convergence across Chinese provinces," Journal of Development Studies, Taylor & Francis Journals, vol. 34(3), pages 1-26.
- Anders Rygh Swensen, 2006. "Bootstrap Algorithms for Testing and Determining the Cointegration Rank in VAR Models -super-1," Econometrica, Econometric Society, vol. 74(6), pages 1699-1714, November.
- Hong Li & Zinan Liu & Ivonia Rebelo, 1998. "Testing the Neoclassical Theory of Economic Growth: Evidence from Chinese Provinces," Economic Change and Restructuring, Springer, vol. 31(2), pages 117-132, May.
- Matsuki, Takashi & Usami, Ryoichi, 2007. "China's Regional Convergence in Panels with Multiple Structural Breaks," MPRA Paper 10167, University Library of Munich, Germany, revised 17 May 2008.
- Johansen, Soren, 1995. "Likelihood-Based Inference in Cointegrated Vector Autoregressive Models," OUP Catalogue, Oxford University Press, number 9780198774501, December.
- LAU, Chi Keung Marco, 2010. "New evidence about regional income divergence in China," China Economic Review, Elsevier, vol. 21(2), pages 293-309, June.
- Li, Hong & Liu, Zinan & Rebelo, Ivonia, 1998. "Testing the Neoclassical Theory of Economic Growth: Evidence from Chinese Provinces," Economic Change and Restructuring, Springer, vol. 31(2-3), pages 117-32.
- Josep Carrion-i-Silvestre & Vicente German-Soto, 2009.
"Panel data stochastic convergence analysis of the Mexican regions,"
Springer, vol. 37(2), pages 303-327, October.
- Josep Lluís Carrion-i-Silvestre & Vicente German-Soto, 2008. "Panel Data Stochastic Convergence Analysis of the Mexican Regions," IREA Working Papers 200805, University of Barcelona, Research Institute of Applied Economics, revised Apr 2008.
- Evans, Paul & Karras, Georgios, 1996. "Convergence revisited," Journal of Monetary Economics, Elsevier, vol. 37(2-3), pages 249-265, April.
When requesting a correction, please mention this item's handle: RePEc:hhs:iuiwop:0872. 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: (Elisabeth Gustafsson)
If references are entirely missing, you can add them using this form.