TITLE:
How Does Growth Follow Differential Convergence Patterns? A Study of the Chinese Regions and Sectors
AUTHORS:
Yanqing Jiang
KEYWORDS:
Growth, Convergence, Labor Productivity, China
JOURNAL NAME:
Theoretical Economics Letters,
Vol.4 No.8,
October
23,
2014
ABSTRACT: This paper
focuses on examining differential convergence patterns in productivity growth
in China. Our empirical analysis shows that the Chinese provinces exhibit
absolute divergence and then absolute convergence respectively during 1990-2000
and 2000-2010. In addition, absolute convergence is present during 1985-1995
and 2000-2010 in the primary sector and during 1995-2010 in the secondary
sector. Our regressions also show that either for the overall regional economy,
or for any individual sector, growth in labor productivity exhibits strong
convergence. Besides the convergence trends, we also find that the secondary
and tertiary sectors have grown significantly faster than the primary sector.