The decomposition of disturbances to national output of China-the evidence of sectoral and regional shocks

Koyin Chang, Dennis Wilson, Yung-Hsiang Ying and Yoonbai Kim ()

Applied Economics, 2010, vol. 42, issue 6, 747-757

Abstract: The Chinese government has established policies to promote its industrial sectors and to develop coastal provinces since the late 1978. To investigate the extent and reason the output growth in China has been influenced by these policies, an error-component model is employed to decompose the importance of sectoral and regional shocks to variations in national output. The results show that both sectoral specific shocks common across regions and regional specific shocks common across sectors are important in explaining the disturbance of national output in China. Specifically, sectoral specific shocks consistently explain relatively more disturbance of Chinese output than regional specific shocks do. Our empirical results are somewhat different from Stockman (1988) and Costello (1993), since they show almost equal explanatory power of sectoral and national shocks in accounting for national outputs in OECD countries.

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/00036840701720887 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:42:y:2010:i:6:p:747-757

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036840701720887

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().