On Income Convergence among China, Hong Kong and Macau

Abstract

Hong Kong and Macau were reunited with China in the late 1990s as two special administrative regions (SARs). Over the last half century, they were China's good examples of economic development, windows of openness and investors. Owing to historical reasons, China lagged far behind Hong Kong and Macau in terms of per capita incomes. However, rapid economic growth in China over the last three decades must have brought about a significant convergence of the three economies. China's economic success has benefited from the integration of its two SARs and the coastal provinces, especially Guangdong, in terms of technological spillover, massive investment and trade. The economic trickledown, direct investment and trade must have been important drivers of economic integration and income convergence. This paper aims to analyse the trend and studies the determinants of income convergence between China and its two SARs. Both parametric and non-parametric techniques are employed to quantify the pace of convergence on per capita incomes in Hong Kong, Macau and the Chinese provinces over a period of more than 40 years. We find no evidence of convergence in the pre-reform period, but strong evidence of both absolute and conditional &bgr;-convergence in the post-reform period. Over the reform period, the pace of convergence is less than 1 per cent per annum without controlling for trade and more than 2 per cent conditional on trade. Copyright 2007 The Authors.

Spatial Econometric Analysis of Urban and County-level Economic Growth Convergence in China

“…Panel data regression results indicate a convergence rate of 3.13 percent and a half-life accordingly reduced to 22.15 years. However, these results are significantly higher than those of previous studies on economic growth at the provincial level (Chen and Fleisher 1996;Ding and Haynes 2006;Gundlach 1997;Lei and Yao 2008). b Convergence Analysis over Different Time Periods Table 4 presents cross-sectional data regression results for absolute b convergence over three periods. Panel data regression results for each period are not presented because, in testing across multiple periods, we found that spatial panel data regression analyses are not applicable to short-term yearly analyses.…”

Effects of marketization on the evolution of firms' R&D efficiency: evidence from China

“…Based on the convergence regression proposed by Barro and Sala-i-Martin (1992), we establish a spatial panel Han-Philips linear dynamic regression modeling equation (3-1). As for robustness considerations, we follow the method of Lin and Liu (2003) and establish a panel data fixed-effect model in equation (3-2) to verify the relationship between market-oriented reform and the regional convergence of R&D efficiency.where Yit represents the growth rate in the R&D efficiency of the i-th region in the t-th year; Yi0 represents the initial R&D efficiency in different regions. I represents the identity matrix; ω is an n×n rank spatial weight matrix.…”

“…Based on the convergence regression proposed by Barro and Sala-i-Martin (1992), we establish a spatial panel Han-Philips linear dynamic regression modeling equation (3-1). As for robustness considerations, we follow the method of Lin and Liu (2003) and establish a panel data fixed-effect model in equation (3-2) to verify the relationship between market-oriented reform and the regional convergence of R&D efficiency.…”

Ana Akım Büyüme Modeli ve Yakınsama Hipotezlerinin Analizi: Panel Veri Yaklaşımı

“…Diğer kısmı ise koşullu yakınsamanın olduğu sonucuna varmışlardır (Canevo & Marcet, 2000;Mathur, 2005;Wo Ho, 2006;Giudici & Mollick, 2007;Galvao & Gomes, 2007;Dawson & Sen, 2007;Pastor & Serrano, 2008;Masron & Yusop, 2008;Lei & Yao, 2008;Bianchi et.al., 2009;Apergis et.al., 2010). Bu çalışmalardan bir kısmı farklı ülke gruplarında mutlak yakınsama bulurken diğer gruplamalarda ise koşullu yakınsamayı bulmuşlardır.…”