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

M.J. Herrerias, Javier Ordonez

Research output: Contribution to journalArticlepeer-review

23 Citations (Scopus)

Abstract

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, and capital intensity, 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.
Original languageEnglish
Pages (from-to)1120-1133
Number of pages14
JournalChina Economic Review
Volume23
Issue number4
DOIs
Publication statusPublished - Dec 2012

Keywords

  • Global political economy
  • china

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