Convergence Clustering in the Chinese Provinces: New Evidence from Several Macroeconomic Indicators

16 Pages Posted: 5 Jun 2020

See all articles by Giray Gozgor

Giray Gozgor

Istanbul Medeniyet University

Chi Keung Marco Lau

Teesside University

Zhou Lu

Tianjin University of Commerce

Date Written: August 2019

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.

Keywords: Chinese economy, convergence clustering, nonlinearity, regional economic activity, regional inflation, spatial distributions

Suggested Citation

Gozgor, Giray and Lau, Chi Keung Marco and Lu, Zhou, Convergence Clustering in the Chinese Provinces: New Evidence from Several Macroeconomic Indicators (August 2019). Review of Development Economics, Vol. 23, Issue 3, pp. 1331-1346, 2019, Available at SSRN: https://ssrn.com/abstract=3618468 or http://dx.doi.org/10.1111/rode.12590

Giray Gozgor (Contact Author)

Istanbul Medeniyet University ( email )

D-100 Karayolu
Merdivenkoy Mevkii No:6/1 Goztepe/Kadıkoy
Istanbul
Turkey

Chi Keung Marco Lau

Teesside University ( email )

Tees Valley
Middlesbrough
Middlesbrough, Middlesbrough TS1 3BX
United Kingdom

HOME PAGE: http://https://research.tees.ac.uk/en/persons/chi-lau

Zhou Lu

Tianjin University of Commerce

P.O. box 9007
Tianjin 300072
United States

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