A Matter of Time: Revisiting Growth Convergence in China

Fredrik Andersson, 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 2011:23, Working Papers from Lund University, Department of Economics

Abstract: China’s unbalanced growth strategy has seemingly fostered growing inter-regional growth disparities and there is little evidence of wealth trickling down from richer provinces to poorer provinces. Given pronounced and frequent inter-regional short-term fluctuations in economic growth, standard convergence tests, however, may be ill specified to detect underlying long-term growth trends in small samples. Our paper suggests a novel approach to distinguish between long-term growth trends and short-term fluctuations. Based on provincial data from 1978 to 2009, our results indicate that China’s provinces only diverge over the short-term. Over the long term, provinces cluster into two converging growth clubs.

Keywords: regional convergence; developing countries; growth; China (search for similar items in EconPapers)
JEL-codes: O14 O33 O41 R11 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2011-07-04, Revised 2012-03-01
New Economics Papers: this item is included in nep-dev, nep-fdg, nep-geo and nep-tra
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Published as Andersson, Fredrik N. G., David Edgerton and Sonja Opper, 'A Matter of Time: Revisiting Growth Convergence in China' in World Development, 2013, pages 239-251.

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