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Why is Chinese Regional Output Diverging?

Westerlund, Joakim LU ; Edgerton, David LU and Opper, Sonja LU (2010) In Journal of Asian Economics 21(4). p.333-344
Abstract
In a recent paper Pedroni and Yao (2006) present strong evidence suggesting that Chinese provincial per-capita output is diverging, a result that goes against the Chinese government’s goal of a balanced wealth-creation across provinces. This paper provides an in-depth analysis of the reasoning behind this finding. Our main result is that the 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 per-capita output inequalities observed at the provincial level is due to both province-specific disparities and to disparities between groups of provinces.
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author
; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Output convergence, Common factor, Panel unit root tests, China
in
Journal of Asian Economics
volume
21
issue
4
pages
333 - 344
publisher
Elsevier
external identifiers
  • scopus:77953124621
ISSN
1049-0078
language
English
LU publication?
yes
id
d69662a7-59e0-4a06-abde-43a4a74d4c69 (old id 1593216)
date added to LUP
2016-04-01 14:16:39
date last changed
2022-01-27 23:45:28
@article{d69662a7-59e0-4a06-abde-43a4a74d4c69,
  abstract     = {{In a recent paper Pedroni and Yao (2006) present strong evidence suggesting that Chinese provincial per-capita output is diverging, a result that goes against the Chinese government’s goal of a balanced wealth-creation across provinces. This paper provides an in-depth analysis of the reasoning behind this finding. Our main result is that the 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 per-capita output inequalities observed at the provincial level is due to both province-specific disparities and to disparities between groups of provinces.}},
  author       = {{Westerlund, Joakim and Edgerton, David and Opper, Sonja}},
  issn         = {{1049-0078}},
  keywords     = {{Output convergence; Common factor; Panel unit root tests; China}},
  language     = {{eng}},
  number       = {{4}},
  pages        = {{333--344}},
  publisher    = {{Elsevier}},
  series       = {{Journal of Asian Economics}},
  title        = {{Why is Chinese Regional Output Diverging?}},
  volume       = {{21}},
  year         = {{2010}},
}