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Classification of Growth Clubs and Convergence: Evidence from Panel Data in China, 1981–2004

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  • Wei Zou
  • Hao Zhou

Abstract

This paper uses provincial panel data to examine club convergence in China during 1981–2004. We estimate the province‐specific initial technology level, A(0), and classify the Chinese economy into “developed club” and “underdeveloped club” based on the economic characteristics of A(0), instead of on geographical location. We find significant evidence of conditional convergence across provinces, and that the convergence speed in the developed club is faster than that in the underdeveloped club. We also find that: (i) human capital accumulation contributes more than physical capital does to club convergence; (ii) there is a positive correlation between infrastructure and growth convergence at the national level and within the developed club, while the spillover effect of infrastructure has not been developed in the developing club; and (iii) the effect of economic openness on convergence is tiny, and insignificant across and within clubs.

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  • Wei Zou & Hao Zhou, 2007. "Classification of Growth Clubs and Convergence: Evidence from Panel Data in China, 1981–2004," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 15(5), pages 91-106, September.
    • Handle: RePEc:bla:chinae:v:15:y:2007:i:5:p:91-106
    DOI: 10.1111/j.1749-124X.2007.00086.x
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    Cited by:

    1. Jenni Pääkkönen, 2012. "Are there industrial and agricultural convergence clubs in China?," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 10(1), pages 1-13, June.
    2. Funke, Michael & Yu, Hao, 2009. "Economic growth across Chinese provinces: insearch of innovation-driven gains," BOFIT Discussion Papers 10/2009, Bank of Finland Institute for Emerging Economies (BOFIT).
    3. Hao, Yu & Liao, Hua & Wei, Yi-Ming, 2015. "Is China’s carbon reduction target allocation reasonable? An analysis based on carbon intensity convergence," Applied Energy, Elsevier, vol. 142(C), pages 229-239.
    4. Qiaoli Xiao & Yue Wang, 2022. "Study on the Spatial Convergence Club and Growth Momentum of China’s Regional Economies," Sustainability, MDPI, vol. 14(19), pages 1-17, October.
    5. Zao Sun & Chun-Ping Chang & Yu Hao, 2017. "Fiscal decentralization and China’s provincial economic growth: a panel data analysis for China’s tax sharing system," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(5), pages 2267-2289, September.
    6. Vendryes, Thomas, 2011. "Migration constraints and development: Hukou and capital accumulation in China," China Economic Review, Elsevier, vol. 22(4), pages 669-692.
    7. Hao, Yu & Liu, Yiming & Weng, Jia-Hsi & Gao, Yixuan, 2016. "Does the Environmental Kuznets Curve for coal consumption in China exist? New evidence from spatial econometric analysis," Energy, Elsevier, vol. 114(C), pages 1214-1223.
    8. Johan Lyhagen & Johanna Rickne, 2014. "Income inequality between Chinese regions: newfound harmony or continued discord?," Empirical Economics, Springer, vol. 47(1), pages 93-110, August.
    9. Wei Zou & Lan Liu & Ziyin Zhuang, 2009. "Skill Premium, Biased Technological Change and Income Differences," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 17(6), pages 64-87, November.
    10. Celine Bonnefond, 2014. "Growth Dynamics And Conditional Convergence Among Chinese Provinces: A Panel Data Investigation Using System Gmm Estimator," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(4), pages 1-25, December.
    11. José Villaverde & Adolfo Maza & Bala Ramasamy, 2010. "Provincial Disparities in Post‐reform China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(2), pages 73-95, March.
    12. Pääkkönen, Jenni, 2009. "Are there industrial and agricultural convergence clubs in China?," BOFIT Discussion Papers 15/2009, Bank of Finland Institute for Emerging Economies (BOFIT).
    13. Bin, Peng, 2015. "Regional Disparity and Dynamic Development of China: a Multidimensional Index," MPRA Paper 61849, University Library of Munich, Germany.
    14. Brasili, Cristina & Barone, Barbara & Bin, Peng, 2014. "Regional Disparity of Vulnerability to Food Insecurity in China," 2014 Third Congress, June 25-27, 2014, Alghero, Italy 173107, Italian Association of Agricultural and Applied Economics (AIEAA).

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