How Does Growth Follow Differential Convergence Patterns? A Study of the Chinese Regions and Sectors

Abstract

This paper focuses on examining differential convergence patterns in productivity growth in China. Our empirical analysis shows that the Chinese provinces exhibit absolute divergence and then absolute convergence respectively during 1990-2000 and 2000-2010. In addition, absolute convergence is present during 1985-1995 and 2000-2010 in the primary sector and during 1995-2010 in the secondary sector. Our regressions also show that either for the overall regional economy, or for any individual sector, growth in labor productivity exhibits strong convergence. Besides the convergence trends, we also find that the secondary and tertiary sectors have grown significantly faster than the primary sector.