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The Unexpected Convergence of Regional Productivity in Chinese Industry, 1978--2005

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  • Lili Wang
  • Adam Szirmai

Abstract

It is widely believed that the acceleration of growth since reforms began in 1978 has increased regional disparities in China. This paper examines whether this is the case for GDP per capita, labour productivity and technical efficiency in industry in 30 regions from 1978 to 2005. The unexpected conclusion is that over the whole period, there has been convergence rather than divergence: more backward regions have caught up with leading regions. The process of regional convergence was especially strong from 1978 to 1990. In the 1990s, there was divergence, but convergence resumed after 2000, leaving regional inequalities in 2005 much smaller than in 1978. Possible theoretical and policy explanations for the observed pattern are considered.

Suggested Citation

  • Lili Wang & Adam Szirmai, 2013. "The Unexpected Convergence of Regional Productivity in Chinese Industry, 1978--2005," Oxford Development Studies, Taylor & Francis Journals, vol. 41(1), pages 29-53, March.
    • Handle: RePEc:taf:oxdevs:v:41:y:2013:i:1:p:29-53
    DOI: 10.1080/13600818.2012.756464
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    References listed on IDEAS

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    1. Szirmai,Adam, 2005. "The Dynamics of Socio-Economic Development," Cambridge Books, Cambridge University Press, number 9780521520843, November.
    2. Verspagen, B., 2000. "Economic growth and technological change: an evolutionary interpretation," Working Papers 00.12, Eindhoven Center for Innovation Studies.
    3. Szirmai, Adam & Ren, Ruoen & Bai, Manyin, 2005. "Chinese Manufacturing Performance in Comparative Perspective, 1980-2002," Center Discussion Papers 28525, Yale University, Economic Growth Center.
    4. Ying Ge, 2006. "Regional Inequality, Industry Agglomeration and Foreign Trade: The Case of China," WIDER Working Paper Series RP2006-105, World Institute for Development Economic Research (UNU-WIDER).
    5. Abramovitz,Moses, 1989. "Thinking about Growth," Cambridge Books, Cambridge University Press, number 9780521333962, January.
    6. Jati Sengupta, 2011. "Understanding Economic Growth," Springer Books, Springer, number 978-1-4419-8026-7, March.
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    Cited by:

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    2. Thanh tam Nguyen Huu, 2016. "Determinant factors of TFP convergence: Evidence from Vietnamese manufacturing firms from 2000-2012," Economics Bulletin, AccessEcon, vol. 36(3), pages 1569-1579.
    3. Lai, Kuei-Kuei & Chen, Yu-Long & Kumar, Vimal & Daim, Tugrul & Verma, Pratima & Kao, Fang-Chen & Liu, Ruirong, 2023. "Mapping technological trajectories and exploring knowledge sources: A case study of E-payment technologies," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    4. Wong, Chan-Yuan & Wang, Lili, 2015. "Trajectories of science and technology and their co-evolution in BRICS: Insights from publication and patent analysis," Journal of Informetrics, Elsevier, vol. 9(1), pages 90-101.
    5. Thanh Tam Nguyen-Huu & Minh Nguyen-Khac & Quoc Tran-Nam, 2017. "The role of environmental regulations and innovation in TFP convergence: Evidence from manufacturing SMEs in Vietnam," WIDER Working Paper Series 092, World Institute for Development Economic Research (UNU-WIDER).
    6. Wang, Lili & Jiang, Shan & Zhang, Shiyun, 2020. "Mapping technological trajectories and exploring knowledge sources: A case study of 3D printing technologies," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    7. Pan, Xiongfeng & Yuan, Jiahong, 2024. "Global Value Chain, GVC、biased technological change and reginal total factor productivity differences," Technological Forecasting and Social Change, Elsevier, vol. 206(C).

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