Industrial Productivity Convergence in China

Xuemei Bai and Gang Li

Journal of Chinese Economic and Business Studies, 2004, vol. 2, issue 2, 155-168

Abstract: This paper examines the convergence process of industrial productivity between Chinese regions. Both σ- and β-convergences are investigated using a panel data set of 30 provinces and autonomous regions over the period 1985-1999. Unconditional σ- and β-convergence methods fail to detect productivity convergence over the whole sample period, although they suggest convergence during a sub-period 1985-1990. The estimates of a human capital enhanced production function, with the constant return to scale constraint, show that productivity gaps between Chinese regions declined during 1985-1999 with a rate of convergence of around 1.3% per annum. Similar results are also found when the data are disaggregated into three broader geographic regions.

Keywords: Convergence; productivity; China; industry (search for similar items in EconPapers)
Date: 2004
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DOI: 10.1080/14765280410001684805

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