Why is Chinese Regional Output Diverging?

Research output: Working paper


In a recent paper Pedroni and Yao (2006) present strong evidence suggesting that Chinese regional output is diverging, a result that flies in the face of the current opinion of Chinese policymakers. This paper provides an in-depth analysis of the reasoning behind this finding. Our main result is that divergence does exist, even when new data and more advanced methods of analysis are used. We also find that it has both an idiosyncratic and a common component. Hence, the increased output inequalities observed at the regional level are due to both region-specific disparities and to disparities between clubs of regions.


Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Economics


  • Panel unit root tests, China, Output convergence
Original languageEnglish
PublisherDepartment of Economics, Lund Universtiy
Publication statusPublished - 2008
Publication categoryResearch

Publication series

NameWorking Papers, Department of Economics, Lund University

Related research output

Joakim Westerlund, David Edgerton & Sonja Opper, 2010, In : Journal of Asian Economics. 21, 4, p. 333-344

Research output: Contribution to journalArticle

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