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Regional disparities and productivity in China: Evidence from manufacturing micro data

Year: 2014

Type: article

Abstract: In this paper we first estimate firm-specific total factor productivities within 2-digit manufacturing industries using a semi-parametric algorithm and micro data for the period 2000–2007. Next, to characterize regional disparities in China we compute aggregate productivity by the categories of three regional typologies, based on population density, coastal-inland, and rural-urban criteria. We analyse the productivity differentials across the categories of the typologies by decomposing regional productivity level and growth into productivity effect and industry composition effect. We find clear evidence of regional convergence. Besides density of economic activity, recent policy and structural factors seem to affect regional productivity level and growth differentials.

Source: Papers of the Regional Science Association

DOI: 10.1111/pirs.12051

Authors: Marian Rizov, Xufei Zhang

Institution: Middlesex University London

Language: English

Topic: Economic Growth and Productivity

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $2,740