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Measuring divergence in provincial growth in China: 1981–2004

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  • Wei Zou
  • Ziyin Zhuang
  • Hao Zhou
  • Hairong Song

Abstract

Provincial income disparity in China has been increasing with rapid economic growth, yet the measurement of the causes of the divergence is relatively inadequate. Based on growth regression analysis and “counterfactual econometrics”, this paper constructs “counterfactual” relative per capita income with consideration of several factors such as initial income level, physical capital, employment, human capital, infrastructure, degree of openness and urbanization. We then measure different factors’ contribution to β‐convergence and the σ‐convergence across provinces. We find out that while contributing significantly to economic growth, different infrastructure, human capital and urbanization rates also result in provincial divergence.

Suggested Citation

  • Wei Zou & Ziyin Zhuang & Hao Zhou & Hairong Song, 2008. "Measuring divergence in provincial growth in China: 1981–2004," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(3), pages 215-227.
    • Handle: RePEc:taf:jecprf:v:11:y:2008:i:3:p:215-227
    DOI: 10.1080/17487870802417727
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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. 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).
    3. Tsun Se Cheong & Yanrui Wu, 2013. "Globalization and Regional Inequality," Economics Discussion / Working Papers 13-10, The University of Western Australia, Department of Economics.
    4. Cheong, Tsun Se & Wu, Yanrui, 2013. "Regional disparity, transitional dynamics and convergence in China," Journal of Asian Economics, Elsevier, vol. 29(C), pages 1-14.

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