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Convergence and transitional dynamics of China's industrial output: A county-level study using a new framework of distribution dynamics analysis

Tsun Se Cheong and Yanrui Wu

China Economic Review, 2018, vol. 48, issue C, 125-138

Abstract: Many scholars have argued that the huge increase in regional inequality in China can be attributed greatly to the disparity in industrialization. This paper contributes to the literature by providing empirical evidence on the transitional dynamics of industrial output by employing a new framework of distribution dynamics analysis, namely, the mobility probability plot (MPP), and a county-level database made up of counties and county-level cities. The new framework can address several inadequacies of the traditional display tools used in the distribution dynamics literature. Stochastic kernel analyses are performed for the nation, the economic zones, and the provinces individually so as to provide an in-depth understanding of the evolution and convergence of industrial output. This study fills the gap in the literature and provides information on mobility of the county-level units, which can greatly aid the policy making process.

Keywords: China; County level; Convergence; Distribution dynamics; Industrialization (search for similar items in EconPapers)
JEL-codes: O14 O53 R11 (search for similar items in EconPapers)
Date: 2018
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Working Paper: Convergence and Transitional Dynamics of China's Industrial Output: A County-Level Study Using a New Framework of Distribution Dynamics Analysis (2014) Downloads
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China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu

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