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Are Central and Western Chinese Provinces Catching up with the East? An Empirical Analysis of Convergence Processes across China

Author

Listed:
  • Marlies Sch¨¹tz

    (Graz Schumpeter Centre, University of Graz, 8010 Graz, Austria)

  • Han Li

    (Institute of Quality Development Strategy, Wuhan University, Wuhan 430072, China)

  • Nicole Palan

    (Graz Schumpeter Centre, University of Graz, 8010 Graz, Austria)

Abstract

Since the Reform and Opening-up policy had been implemented in 1978, mainland China has experienced significant economic growth, with GDP rising on an annual average of about 10%. However, this growth miracle was far from being evenly distributed across space. It is, therefore, the aim of this paper to study the evolution of spatial disparities in economic development across the country between 1993 and 2012, a period which is characterized by all provinces having access to international markets and being open for international investors. We seek to answer the question of whether Central and Western Chinese provinces were catching up with the East. We define ¡®catching up¡¯ as a growing similarity among spatial units. Convergence processes might manifest in four dimensions, including (1) the spatial allocation of employment, value added generation and the fixed capital stock, (2) forms of technical change, (3) productivity patterns, and (4) income distribution. Results show that persistent phases of convergence appeared. However, in some cases the catching up of China¡¯s less developed parts with the flourishing East was limited to only a few Western and Central Chinese provinces. A high degree of path-dependency in economic development prevented catching up from taking place in a more uniform manner.

Suggested Citation

  • Marlies Sch¨¹tz & Han Li & Nicole Palan, 2017. "Are Central and Western Chinese Provinces Catching up with the East? An Empirical Analysis of Convergence Processes across China," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 12(4), pages 571-606, December.
    • Handle: RePEc:fec:journl:v:12:y:2017:i:4:p:571-606
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-006-017-0024-4
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    Cited by:

    1. Henryk Gurgul & Łukasz Lach, 2019. "Regional patterns in technological progress of Poland: the role of EU structural funds," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 27(4), pages 1195-1220, December.
    2. Bortolotti, Luca & Biggeri, Mario, 2022. "Is the slowdown of China's economic growth affecting multidimensional well-being dynamics?," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 478-489.

    More about this item

    Keywords

    catching up; convergence process; spatial disparities in economic development; China;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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