Working Paper Series
Johan Lyhagen and Johanna Rickne
Income Inequality between Chinese Regions: Newfound Harmony or Continued Discord?
Abstract: This paper develops an improved test of economic
convergence or divergence using time series methods. The usefulness of the
method is illustrated in an analysis of the growth pattern between Chinese
regions in 1952–2007. Comparing all combinations of regional pairs, the
analysis yields support for economic divergence in roughly half of the
cases. In the other half, we instead find that regions have grown while
maintaining stable income differences. As such, the results show the
co-existence of divergence and conditional convergence among China's
Keywords: China; Output convergence; Non-linear cointegration; (follow links to similar papers)
JEL-Codes: C32; O53; R11; (follow links to similar papers)
20 pages, May 11, 2011
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