A Case Study on the Quantitative Measurement of the Convergence of China’s Interprovincial Economic Growth

A Case Study on the Quantitative Measurement of the Convergence of China’s Interprovincial Economic Growth


Author:Liu Jinquan, Sui Jianli ,Yan Chao Journal:Management World  Date:2009(10)

Keywords Panel unit root test;Actual convergence;Nonlinear TAR model;bootstrap

Abstract

By the combination of the use of the threshold regression mode, the panel data unit root tests and the computa- tion of critical values by bootstrap simulation, and by the use of the Tar Model of a non-linear framework, we have examined the characteristics of the actual convergence of the per -capita GDP panel data of 28 provinces in East, Central and West China,and then, explored the convergence of the road to the economic growth of China’s different regions and surveyed the economic differences among various regions. We have discovered that the per-capita GDP data of East, Central and West China exhibit apparent characteristics of convergence, that the road to the economic growth of East and Central China was completely convergent before the reform and opening to the outside world (TRAOTTOW), that this road has displayed the characteristics of partial convergence, that, in East and West China,the economic growth road was partly convergent before TRAOTTOW and this road has had the obvious tendency towards divergence since TRAOTTOW, and that the above fact shows that the economic growth gap between East China and Central and West China has had the tendency towards widening since TRAOTTOW.

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