Economic growth and convergence in China's provinces: theory and evidence

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Ghatak, Subrata ; Li, Hong (2002)
  • Publisher: Faculty of Arts and Social Sciences, Kingston University
  • Subject: economics | China; economic growth; Convergence; panel data analysis; fixed and random effects
    • jel: jel:C23 | jel:O41 | jel:O11 | jel:O53
    mesheuropmc: health care economics and organizations

This paper uses both cross-sectional and panel data on Chinese provinces over the reform period 1978-1998 to examine the pattern of China’s regional economic growth on the basis of a theoretical model on convergence. We find a tendency to converge in terms of real GDP per capita both unconditionally and unconditionally. In addition, the cross-section regression supports the hypothesis that the growth rates of real GDP per capita are higher in provinces with greater openness to foreign countries, lower level of agricultural activity and higher investment in human capital.
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