A Spatial Investigation of σ-Convergence in China

Kuan-Pin Lin, Zhi-He Long and Mei Wu

Hi-Stat Discussion Paper Series from Institute of Economic Research, Hitotsubashi University

Abstract: Using techniques of spatial econometrics, this paper investigates σ-convergence of provincial real per capita gross domestic product (GDP) in China. The empirical evidence concludes that spatial dependence across regions is strong enough to distort the traditional measure of σ-convergence. This study focuses on the variation of per capita GDP that is dependent on the development processes of neighboring provinces and cities. This refinement of the conditional σ-convergence model specification allows for analysis of spatial dependence in the mean and variance. The corrected measure of σ-convergence in China indicates a lower level of dispersion in the economic development process. This implies a smaller divergence in real per capita GDP, although convergence across regions is still a challenging goal to achieve in the 2000s.

Keywords: σ-Convergence; Moran's index; spatial dependence; spatial lag (search for similar items in EconPapers)
JEL-codes: C23 O18 O53 R11 (search for similar items in EconPapers)
Date: 2006-03
New Economics Papers: this item is included in nep-cna, nep-geo, nep-sea, nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:hst:hstdps:d05-155

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