A Matter of Time: Revisiting Growth Convergence in China

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A Matter of Time: Revisiting Growth Convergence in China. / Andersson, Fredrik N G; Edgerton, David; Opper, Sonja.

I: World Development, Vol. 45, Nr. May, 2013, s. 239-251.

Forskningsoutput: TidskriftsbidragArtikel i vetenskaplig tidskrift

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TY - JOUR

T1 - A Matter of Time: Revisiting Growth Convergence in China

AU - Andersson, Fredrik N G

AU - Edgerton, David

AU - Opper, Sonja

PY - 2013

Y1 - 2013

N2 - China’s unbalanced growth strategy has seemingly fostered growing inter-regional growth disparities and there is little evidence of wealth trickling down from richer provinces to poorer provinces. Standard convergence tests, however, may be ill specified to detect underlying long-term growth trends in small samples due to the pronounced and frequent inter-regional short-term fluctuations. Our paper suggests a novel approach to distinguish between these long-term growth trends and short-term fluctuations. Based on provincial data from 1978 to 2009, our results indicate that China’s provinces only diverge over the shortterm. Over the long term, provinces cluster into two converging growth clubs.

AB - China’s unbalanced growth strategy has seemingly fostered growing inter-regional growth disparities and there is little evidence of wealth trickling down from richer provinces to poorer provinces. Standard convergence tests, however, may be ill specified to detect underlying long-term growth trends in small samples due to the pronounced and frequent inter-regional short-term fluctuations. Our paper suggests a novel approach to distinguish between these long-term growth trends and short-term fluctuations. Based on provincial data from 1978 to 2009, our results indicate that China’s provinces only diverge over the shortterm. Over the long term, provinces cluster into two converging growth clubs.

KW - China

KW - growth

KW - developing countries

KW - regional convergence

U2 - 10.1016/j.worlddev.2012.12.013

DO - 10.1016/j.worlddev.2012.12.013

M3 - Article

VL - 45

SP - 239

EP - 251

JO - World Development

JF - World Development

SN - 1873-5991

IS - May

ER -