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The Dynamics of Provincial Growth in China: A Nonparametric Approach
Author:
Mr. Bulent Unelnull

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Mr. Harm Zebregs
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Series:
IMF Working Papers
Volume/Issue:
Volume 2006: Issue 055
Language:
English
Publication Date:
01 Feb 2006
DOI:
https://doi.org/10.5089/9781451863154.001
ISBN:
9781451863154
ISSN:
1018-5941
Pages:
24
Keywords:
WP; capital deepening
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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China's growth record since the start of its economic reforms in 1978 has been extraordinary. Yet, this impressive performance has been associated with an increasing regional income disparity. We use a recently developed nonparametric approach to analyze the variation in labor productivity growth across China's provinces. This approach imposes less structure on the data than the standard growth accounting framework and allows for a breakdown of labor productivity into capital deepening, efficiency gains, and technological progress. Like other studies before us, we do not find strong evidence of convergence in labor productivity across China's provinces during 1978-98. However, our results show that provinces converged in efficiency levels, while they diverged in capital deepening and technological progress.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2006: Issue 055