Retest on China's Regional Economic Convergence in a Perspective of Spatial Econometrics:Provincial Data from 1985 to 2007
Jie Zhang
Abstract
Jie Zhang
Abstract
In a perspective of spatial economics,the paper tests the convergence and formation mechanism of China's regional economic growth.The results of the empirical study are as follows:firstly,from 1985 to 2007,China's regional economic growth displays the absolute β-convergence in the long term,but it does not display absolute β-convergence in the short term,which can not be achieved by OLS;secondly,China's regional economic growth displays conditional β-convergence both in long and short terms,which also can be achieved by OLS.
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In a perspective of spatial economics,the paper tests the convergence and formation mechanism of China's regional economic growth.The results of the empirical study are as follows:firstly,from 1985 to 2007,China's regional economic growth displays the absolute β-convergence in the long term,but it does not display absolute β-convergence in the short term,which can not be achieved by OLS;secondly,China's regional economic growth displays conditional β-convergence both in long and short terms,which also can be achieved by OLS.
Key concepts: Convergence (economics), Conditional convergence, China, Economics, Econometrics, Spatial econometrics, Perspective (graphical), Panel data