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Endogenous innovation growth theory and regional income convergence in China
Author(s) -
Wei Yingqi,
Liu Xiaming,
Song Haiyan,
Romilly Peter
Publication year - 2001
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.721
Subject(s) - openness to experience , economics , endogenous growth theory , panel data , convergence (economics) , imitation , econometrics , unit root , aggregate data , conditional convergence , per capita , per capita income , china , economic geography , macroeconomics , human capital , economic growth , mathematics , geography , statistics , psychology , social psychology , population , demography , archaeology , sociology
Endogenous innovation growth theory is tested by using panel data for 27 provinces across China. R&D expenditure and openness are added to the standard convergence regressions to control for different structural characteristics in each province. A standardized ‘ t ‐bar’ test for unit roots is applied to examine the properties of the data and identify a long‐run relationship among the variables. By allowing for differences in the aggregate production function across regions, we find evidence of convergence. The empirical results support the endogenous innovation growth model in which regional per capita income can converge given technological diffusion, transfer and imitation. Copyright © 2001 John Wiley & Sons, Ltd.