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Technological change and China's regional disparities — A calibrated equilibrium analysis

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  • Liu, Xiaoyun
  • Wang, Xiuqing
  • Whalley, John
  • Xin, Xian

Abstract

We in this paper assess the impacts of technological change on China's regional disparities using a general equilibrium model of multiple regions and multiple sectors. We use the most recent available Chinese interregional data to calibrate the model parameters for 1987 and 2000. We then assess the impacts of neutral, biased, and aggregate technological changes on China's regional disparity by conducting counterfactual experiments. The results generally suggest that China's overall technological change between 1987 and 2000 has increased China's regional disparities. The results also suggest that neutral technological change reduces China's regional disparities while biased technological change increases disparities and the influences of the latter outweigh those of the former and the net effects of technological changes on regional disparities are increasing.

Suggested Citation

  • Liu, Xiaoyun & Wang, Xiuqing & Whalley, John & Xin, Xian, 2011. "Technological change and China's regional disparities — A calibrated equilibrium analysis," Economic Modelling, Elsevier, vol. 28(1), pages 582-588.
    • Handle: RePEc:eee:ecmode:v:28:y:2011:i:1:p:582-588
    DOI: 10.1016/j.econmod.2010.06.013
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    Cited by:

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    3. Dimitrios A Giannias & Eleni Sfakianaki, 2013. "Regional and environmental classifications of the 27 EU countries," Journal of Developing Areas, Tennessee State University, College of Business, vol. 47(2), pages 139-157, July-Dece.
    4. Rong Sheng & Shi Lin Liu, 2018. "Evolution on regional disparities in China from 2000 to 2012: evidence from 74 cities within three mega-urban regions along Yangtze River," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(5), pages 1989-2006, September.

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    More about this item

    Keywords

    Technological change; Regional disparity; General equilibrium model;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

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