Article: Regional growth in China under economic reforms.(Statistical Data Included)

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This article uses both cross-section and panel data approaches to study regional growth in China. Inter-regional income inequality increased (a divergence), the rich regions became richer but poor regions poorer ([beta] divergence), over the data period 1978-95. This contradicts results from other cross-region country studies shown by Sala-i-Martin [1996] and some earlier studies on China. Only after controlling for regional effects, population growth, and investment in both physical and human capital do the data show significant [beta]-convergence. More interestingly, the degree of openness and transportation are two other important factors ...

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