Convergence across Chinese provinces: An analysis using Markov transition matrix

Sakamoto, Hiroshi; Islam, Nazrul

doi:10.1016/j.chieco.2006.07.002

Cited by 52 publications

(47 citation statements)

References 25 publications

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“…During the last two decades, China has been experiencing a dramatic switch from central planning to market mechanism, accompanied by a movement from public ownership over productive assets to private ownership. The issue whether or not economic convergence will take place across China's provinces has attracted wide attentions, and been examined by several papers (Yao and Zhang, 2001;Brun et al, 2002;Sakamoto and Islam, 2008). Remarkably, China government has been making great efforts to reduce the disparities between regions and urban-rural areas in order to achieve sustainable development.…”

Section: Estimation Of Socio-economic Driving Forcesmentioning

confidence: 99%

Application of an integrated system dynamics and cellular automata model for urban growth assessment: A case study of Shanghai, China

Han

Hayashi

Cao

et al. 2009

Landscape and Urban Planning

261

124

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Section: Estimation Of Socio-economic Driving Forcesmentioning

confidence: 99%

Application of an integrated system dynamics and cellular automata model for urban growth assessment: A case study of Shanghai, China

Han

Hayashi

Cao

et al. 2009

Landscape and Urban Planning

261

124

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“…5 However, there is a large body of empirical research using other notions of convergence such as β-or σ-convergence, like Rozelle (1994), Jian et al (1996), Chen and Fleisher (1996), Raiser (1998), Zhang (2001a, 2001b), Weeks and Yao (2003), Wang (2004), and Pedroni and Yao (2006), among others. On the other hand, only three papers were found that focused on the dynamics of the distribution of per capita income, namely, Bhalla et al (2003), Sakamoto and Islam (2008), and Herrerías et al (2011). and Keung and Lau (2010). 6 The first paper, Zhang et al (2001), investigated China's regional per capita income convergence over the period 1952-1997 using the Augmented Dickey Fuller (ADF, hereinafter) and Perron (Perron test, hereinafter) unit root tests.…”

Section: Introductionmentioning

confidence: 99%

New evidence on the role of regional clusters and convergence in China (1952–2008)

Herrerías

Ordóñez

2012

China Economic Review

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A new panel method is applied to the case of Chinese provinces to analyze the existence of club convergence in terms of per capita income, labor productivity, capital intensity, and total factor productivity from 1952 to 2008. The advantage of this approach is that it takes into account the heterogeneity of Chinese regions in a nonlinear time-varying framework, where more attention is paid to the spatial dimension. This time-varying approach outperforms other methods used in the relevant literature for an economy in transition, such as China, that has undergone a significant transformation over the period under consideration. Our results indicate that Chinese regions have converged into clubs. However, it is observed that Heilongjiang is diverging in terms of labor productivity and capital intensity, while Liaoning and Guizhou display similar patterns in terms of labor productivity, and Shanxi and Hebei in terms of capital intensity. These results indicate that specific economic packages need to be implemented in the clusters that were identified, with special attention to those regions that show a divergence behavior, in order to guarantee the sustainability and equality of regional growth. Universitat Jaume I Department of Economics AbstractA new panel method is applied to the case of Chinese provinces to analyze the existence of club convergence in terms of per capita income, labor productivity, capital intensity, and total factor productivity from 1952 to 2008. The advantage of this approach is that it takes into account the heterogeneity of Chinese regions in a nonlinear time-varying framework, where more attention is paid to the spatial dimension. This time-varying approach outperforms other methods used in the relevant literature for an economy in transition, such as China, that has undergone a significant transformation over the period under consideration. Our results indicate that Chinese regions have converged into clubs. However, it is observed that Heilongjiang is diverging in terms of labor productivity and capital intensity, while Liaoning and Guizhou display similar patterns in terms of labor productivity, and Shanxi and Hebei in terms of capital intensity. These results indicate that specific economic packages need to be implemented in the clusters that were identified, with special attention to those regions that show a divergence behavior, in order to guarantee the sustainability and equality of regional growth.

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“…China's vast population and territory, as well as its geographical and economic diversity, suggest the great importance of policy coordination between the central 1 As suggested by an anonymous referee, the issue of business cycles' synchronization relates to that of GDP convergence. Numerous papers have tested GDP convergence between Chinese provinces relying on different methods such as the Markov transition matrix methodology (Sakamoto and Islam, 2008) or panel unit root test (Narayan, 2008). While they fail to reach a clear consensus, they suggest possible convergence of income between Chinese provinces (Narayan, 2008;Chen and Fleisher, 1996;Jian et al, 1996).…”

Section: Introductionmentioning

confidence: 99%

China as an Integrated Area?

Poncet¹,

Barthélemy²

2008

Journal of Economic Integration

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Convergence across Chinese provinces: An analysis using Markov transition matrix

Cited by 52 publications

References 25 publications

Application of an integrated system dynamics and cellular automata model for urban growth assessment: A case study of Shanghai, China

Application of an integrated system dynamics and cellular automata model for urban growth assessment: A case study of Shanghai, China

New evidence on the role of regional clusters and convergence in China (1952–2008)

China as an Integrated Area?

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