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The Cointegrating Relationship of Regional Growth in China

Received: 26 November 2015    Accepted:     Published: 26 November 2015
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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.

DOI 10.11648/j.hss.20150305.23
Published in Humanities and Social Sciences (Volume 3, Issue 5, September 2015)
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), 2024. Published by Science Publishing Group

Keywords

Regional Cointegration, Spatial Error Correction Model, Regional Covergence

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Author Information
  • Department of Industrial Economics, Tamkang University, New Taipei City, Taiwan

  • Division of Marketing, Delta Electronics, Inc., Taipei, Taiwan

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    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

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    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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    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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  • @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://download.sciencepg.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}
    }
    

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    T1  - The Cointegrating Relationship of Regional Growth in China
    AU  - Chun-Hung A. Lin
    AU  - Chia-Ming Li
    Y1  - 2015/11/26
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    N1  - https://doi.org/10.11648/j.hss.20150305.23
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    JF  - Humanities and Social Sciences
    JO  - Humanities and Social Sciences
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    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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