Growth and Regional Inequality in China During the Reform Era
Derek Jones,
Cheng Li () and
Ann Owen
William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan
Abstract:
Chinese city-level data indicate that differences in growth rates are far more severe than indicated in previous studies which typically use data at higher levels of aggregation. We estimate growth equations using city-level data and find that the policy of awarding a special economic zone status enhances growth substantially, increasing annual growth rates by 5.5 percentage points. Annual growth rates of open coastal cities are, on average, 3 percentage points higher. Our qualitative results on the role of policy and the effects of FDI are similar to those of earlier studies that have employed provincial-level data; but, quantitatively, our results are substantially different. We also provide evidence of an indirect role of policy in the growth process through its ability to attract growth-enhancing foreign direct investment.
Keywords: growth; regional inequality; China (search for similar items in EconPapers)
Pages: 34 pages
Date: 2003-06-20
New Economics Papers: this item is included in nep-dev, nep-ifn, nep-sea and nep-tra
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Citations: View citations in EconPapers (74)
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Journal Article: Growth and regional inequality in China during the reform era (2003) 
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