Economic growth and diverging clubs: a case study of the Chinese regions

Shujie Yao and Zongyi Zhang

Applied Economics Letters, 2002, vol. 9, issue 12, 833-836

Abstract: A production model is proposed to explain why economic growth may lead to regional inequality and club divergence. Economic growth starts from a few centres and spills over to other regions. The spillover effect diminishes as distance rises, causing club formation with a clear geographical pattern.

Date: 2002
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DOI: 10.1080/13504850210161940

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