Why is Chinese provincial output diverging?

Westerlund, Joakim, Edgerton, David L. and Opper, Sonja 2010, Why is Chinese provincial output diverging?, Journal of Asian economics, vol. 21, no. 4, pp. 333-344.

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Title Why is Chinese provincial output diverging?
Author(s) Westerlund, Joakim
Edgerton, David L.
Opper, Sonja
Journal name Journal of Asian economics
Volume number 21
Issue number 4
Start page 333
End page 344
Total pages 12
Publisher Elsevier BV
Place of publication Amsterdam, The Netherlands
Publication date 2010-08
ISSN 1049-0078
Keyword(s) China
output convergence
panel unit root tests
common factor
Summary In a recent paper Pedroni and Yao (2006) present strong evidence suggesting that Chinese provincial per-capita output is diverging, a result that goes against the Chinese government’s goal of a balanced wealth-creation across provinces. This paper provides an in-depth analysis of the reasoning behind this finding. Our main result is that the divergence does exist, even when new data and more advanced methods of analysis are used. We also find that it has both an idiosyncratic and a common component. Hence, the increased per-capita output inequalities observed at the provincial level is due to both province-specific disparities and to disparities between groups of provinces.
Language eng
Field of Research 159999 Commerce, Management, Tourism and Services not elsewhere classified
Socio Economic Objective 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
HERDC Research category C1.1 Refereed article in a scholarly journal
Copyright notice ©2010, Elsevier
Persistent URL http://hdl.handle.net/10536/DRO/DU:30046290

Document type: Journal Article
Collection: School of Accounting, Economics and Finance
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