Sectoral Productivity and Regional Disparities in China, 1978–2006

Kiril Tochkov and Wenting Yu
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Wenting Yu: Tepper School of Business, Carnegie Mellon University, Pittsburgh, PA 15213, USA.

Comparative Economic Studies, 2013, vol. 55, issue 4, 582-605

Abstract: This paper examines labor productivity growth in the three main sectors in China in the context of regional convergence by employing a novel methodology and new sectoral data over the period 1978–2006. The results show that all sectors experienced major shifts in productivity but with different patterns. In agriculture and services, the uniform distribution has given way to a bimodal one. The secondary sector exhibits less polarization across regions despite higher mobility. Research and development (R&D) spending, human capital, and infrastructure are found to amplify regional divergence, while physical capital and foreign trade are identified as the key drivers of convergence.

Date: 2013
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