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Income Inequality between Chinese Regions: Newfound Harmony or Continued Discord?

Johan Lyhagen and Johanna Rickne
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Johan Lyhagen: Department of Statistics, Postal: Uppsala University

No 872, Working Paper Series from Research Institute of Industrial Economics

Abstract: This paper develops an improved test of economic convergence or divergence using time series methods. The usefulness of the method is illustrated in an analysis of the growth pattern between Chinese regions in 1952–2007. Comparing all combinations of regional pairs, the analysis yields support for economic divergence in roughly half of the cases. In the other half, we instead find that regions have grown while maintaining stable income differences. As such, the results show the co-existence of divergence and conditional convergence among China's regions.

Keywords: China; Output convergence; Non-linear cointegration (search for similar items in EconPapers)
JEL-codes: C32 O53 R11 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2011-05-11
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Income inequality between Chinese regions: newfound harmony or continued discord? (2014) Downloads
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