Since the open door policy declared in the late 1970s, the economic growth of China has been rapidly developed and accumulated. However, the widening regional economic development disparity has been brought to the concern by the government. It is doubtful that the regional economic growth would tend to be equivalent by spillover effects from some more-developed regions to other less-developed ones. The goal of this paper is to examine the long-run relationship of Chinese provincial economic performance with the consideration of the characteristic of cross-sectional dependence in the panel data covering 30 provinces in China over the period 1990-2012. We find a strong spatial dependence over in China’s regional production function. After a cointegrating relation is confirmed using the methodology of Kao (1999) and Pedroni (1999), a spatial error correction model is further applied. We find the local cointegration term is significantly negative, suggesting a long-run convergence relation for the Chinese regional economic growth.
| Published in | Humanities and Social Sciences (Volume 3, Issue 5) |
| DOI | 10.11648/j.hss.20150305.23 |
| Page(s) | 249-255 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2015. Published by Science Publishing Group |
Regional Cointegration, Spatial Error Correction Model, Regional Covergence
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APA Style
Chun-Hung A. Lin, Chia-Ming Li. (2015). The Cointegrating Relationship of Regional Growth in China. Humanities and Social Sciences, 3(5), 249-255. https://doi.org/10.11648/j.hss.20150305.23
ACS Style
Chun-Hung A. Lin; Chia-Ming Li. The Cointegrating Relationship of Regional Growth in China. Humanit. Soc. Sci. 2015, 3(5), 249-255. doi: 10.11648/j.hss.20150305.23
AMA Style
Chun-Hung A. Lin, Chia-Ming Li. The Cointegrating Relationship of Regional Growth in China. Humanit Soc Sci. 2015;3(5):249-255. doi: 10.11648/j.hss.20150305.23
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Download@article{10.11648/j.hss.20150305.23,
author = {Chun-Hung A. Lin and Chia-Ming Li},
title = {The Cointegrating Relationship of Regional Growth in China},
journal = {Humanities and Social Sciences},
volume = {3},
number = {5},
pages = {249-255},
doi = {10.11648/j.hss.20150305.23},
url = {https://doi.org/10.11648/j.hss.20150305.23},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.hss.20150305.23},
abstract = {Since the open door policy declared in the late 1970s, the economic growth of China has been rapidly developed and accumulated. However, the widening regional economic development disparity has been brought to the concern by the government. It is doubtful that the regional economic growth would tend to be equivalent by spillover effects from some more-developed regions to other less-developed ones. The goal of this paper is to examine the long-run relationship of Chinese provincial economic performance with the consideration of the characteristic of cross-sectional dependence in the panel data covering 30 provinces in China over the period 1990-2012. We find a strong spatial dependence over in China’s regional production function. After a cointegrating relation is confirmed using the methodology of Kao (1999) and Pedroni (1999), a spatial error correction model is further applied. We find the local cointegration term is significantly negative, suggesting a long-run convergence relation for the Chinese regional economic growth.},
year = {2015}
}
TY - JOUR T1 - The Cointegrating Relationship of Regional Growth in China AU - Chun-Hung A. Lin AU - Chia-Ming Li Y1 - 2015/11/26 PY - 2015 N1 - https://doi.org/10.11648/j.hss.20150305.23 DO - 10.11648/j.hss.20150305.23 T2 - Humanities and Social Sciences JF - Humanities and Social Sciences JO - Humanities and Social Sciences SP - 249 EP - 255 PB - Science Publishing Group SN - 2330-8184 UR - https://doi.org/10.11648/j.hss.20150305.23 AB - Since the open door policy declared in the late 1970s, the economic growth of China has been rapidly developed and accumulated. However, the widening regional economic development disparity has been brought to the concern by the government. It is doubtful that the regional economic growth would tend to be equivalent by spillover effects from some more-developed regions to other less-developed ones. The goal of this paper is to examine the long-run relationship of Chinese provincial economic performance with the consideration of the characteristic of cross-sectional dependence in the panel data covering 30 provinces in China over the period 1990-2012. We find a strong spatial dependence over in China’s regional production function. After a cointegrating relation is confirmed using the methodology of Kao (1999) and Pedroni (1999), a spatial error correction model is further applied. We find the local cointegration term is significantly negative, suggesting a long-run convergence relation for the Chinese regional economic growth. VL - 3 IS - 5 ER -
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