Stochastic regional convergence in China

The role of regional clusters in a non-linear perspective (1952-2007)

Maria Jesus Herrerias , Javier Ordonez

Research output: Contribution to journalArticle

Abstract

This paper investigates the notion of stochastic convergence behaviour across the Chinese provinces. Unlike previous works, the present paper takes into account the economic geography by examining the regional clusters and the significant transformation of the Chinese economy through the introduction of structural breaks and nonlinearities in the model. Results indicate that the regional clusters are relevant to the convergence behaviour across China, when both the administrative division and the regional clusters are considered. However, the number of provinces that are converging is higher in the latter case. When nonlinearities were considered across the regional clusters, we found that 18 provinces have already converged with their cluster, 3 provinces are catching up and 10 regions show divergence. These findings are useful for the design and development of national and regional economic policies in the Chinese economy.
Original languageEnglish
Pages (from-to)153-169
Number of pages17
JournalPacific Economic Review
Volume19
Issue number2
DOIs
Publication statusPublished - May 2014

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Regional convergence
Regional clusters
China
Nonlinearity
Chinese economy
Economic geography
Regional economics
Stochastic convergence
Catching-up
Divergence
Economic policy
Design and development
Structural breaks

Cite this

Stochastic regional convergence in China : The role of regional clusters in a non-linear perspective (1952-2007). / Herrerias , Maria Jesus; Ordonez , Javier.

In: Pacific Economic Review, Vol. 19, No. 2, 05.2014, p. 153-169.

Research output: Contribution to journalArticle

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