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- Title
An empirical study of openness and convergence in labor productivity in the Chinese provinces.
- Authors
Jiang, Yanqing
- Abstract
Based on the theoretical framework of the Solow growth model, this paper employs a dynamic panel data approach to examine the impact of openness on growth and convergence in labor productivity in the Chinese provinces during the period 1984-2008. The study finds that regional openness has a significantly positive effect on regional growth in labor productivity in the Chinese provinces. When regional heterogeneity and regional openness are accounted for, the study finds fast conditional convergence in labor productivity across the Chinese provinces. As a byproduct, this study also estimates the structural parameters of the aggregate production function in the case of China. In sum, the major findings of this study lend strong support to the claim that openness promotes growth of labor productivity in China.
- Subjects
CHINA; EMPIRICAL research; ECONOMIC convergence; LABOR productivity; ECONOMIC development; CHINESE province economic conditions; PANEL analysis; ECONOMIC models
- Publication
Economic Change & Restructuring, 2012, Vol 45, Issue 4, p317
- ISSN
1573-9414
- Publication type
Article
- DOI
10.1007/s10644-011-9120-1