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Economic growth and convergence in China's provinces: theory and evidence

Author

Listed:
  • Ghatak, Subrata

    (Kingston University London)

  • Li, Hong

    (Kingston University London)

Abstract

This paper uses both cross-sectional and panel data on Chinese provinces over the reform period 1978-1998 to examine the pattern of China’s regional economic growth on the basis of a theoretical model on convergence. We find a tendency to converge in terms of real GDP per capita both unconditionally and unconditionally. In addition, the cross-section regression supports the hypothesis that the growth rates of real GDP per capita are higher in provinces with greater openness to foreign countries, lower level of agricultural activity and higher investment in human capital.

Suggested Citation

  • Ghatak, Subrata & Li, Hong, 2002. "Economic growth and convergence in China's provinces: theory and evidence," Economics Discussion Papers 2002-1, School of Economics, Kingston University London.
    • Handle: RePEc:ris:kngedp:2002_001
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    More about this item

    Keywords

    China; economic growth; Convergence; panel data analysis; fixed and random effects;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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