Convergence clustering in the Chinese provinces : New evidence from several macroeconomic indicators

Giray Gozgor, Chi Keung Marco Lau, Zhou Lu

Research output: Contribution to journalArticlepeer-review

Abstract

In this paper, the convergence clustering in 31 Chinese provinces regarding several important economic indicators over the period 1952 to 2016 was empirically investigated. Several provincial clusters were identified in the per capita (real) gross domestic product (GDP), consumption–income ratio, retail price, and consumer price inflation rates, using a club convergence and clustering procedure. The empirical findings are as follows. First, it was found that all series of the original data contain a significant nonlinear component. Second, it was observed that there are five significant clusters for the per capita income in China. Third, it was found that there are four significant clusters for the consumption–income ratio. Fourth, it was observed that there are four significant clusters for the retail inflation rates and two significant clusters for the consumer inflation rates in China. These results will enable local and central planners to implement economic growth, savings and price adjustment policies for different groups of provinces.

Original languageEnglish
Pages (from-to)1331-1346
Number of pages16
JournalReview of Development Economics
Volume23
Issue number3
DOIs
Publication statusPublished - 11 Apr 2019

Bibliographical note

Funding Information:
The authors acknowledge the financial supports from the Natural Science Foundation of Zhejiang Province, China (LY18G030040). [Correction added on 22 April 2019, after Online publication: Acknowledgment section has been added in this current version.]

Publisher Copyright:
© 2019 John Wiley & Sons Ltd

Copyright:
Copyright 2019 Elsevier B.V., All rights reserved.

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