Why is Chinese Regional Output Diverging?

Joakim Westerlund, David Edgerton and Sonja Opper ()
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Sonja Opper: Department of Economics, Lund University, Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund, Sweden, http://www.nek.lu.se/en/contact

No 2008:15, Working Papers from Lund University, Department of Economics

Abstract: In a recent paper Pedroni and Yao (2006) present strong evidence suggesting that Chinese regional output is diverging, a result that flies in the face of the current opinion of Chinese policymakers. This paper provides an in-depth analysis of the reasoning behind this finding. Our main result is that divergence does exist, even when new data and more advanced methods of analysis are used. We also find that it has both an idiosyncratic and a common component. Hence, the increased output inequalities observed at the regional level are due to both region-specific disparities and to disparities between clubs of regions.

Keywords: China; Output convergence; Panel unit root tests; Common factor (search for similar items in EconPapers)
JEL-codes: C33 O53 R11 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2008-10-29, Revised 2008-12-03
New Economics Papers: this item is included in nep-cna, nep-geo and nep-tra
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Citations: View citations in EconPapers (1)

Published as Westerlund, Joakim, David Edgerton and Sonja Opper, 'Why is Chinese Provincial Output Diverging?' in Journal of Asian Economics, 2010, pages 333-344.

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:lunewp:2008_015

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