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Convergence in labor productivity across provinces and production sectors in China

Bhattarai, Keshab; Qin, Weiguang

Authors

Weiguang Qin



Abstract

Empirical evidence is found for the β and σ convergence towards the steady states of labor productivity across provinces and production sectors in China based on estimates of static, dynamic and quintile panel data models. The pattern of convergences is found to be asymmetric across sectors according to quantile panel regression estimations. The pattern of convergence was more obvious when controls for human capital, FDI, industrial concentration and inequality were introduced for the robustness of our analysis. While the effects of human capital and FDI on productivity convergence are asymmetric across provinces and sectors, more inequality or higher rate of industrial concentration lead to divergence either in simple or quantile panel estimations. Implications these findings are clear. Policies that promote competition and more equal distribution are better for convergence in labour productivity across provinces and sectors in China.

Citation

Bhattarai, K., & Qin, W. (2022). Convergence in labor productivity across provinces and production sectors in China. Journal of economic asymmetries, 25, Article e00247. https://doi.org/10.1016/j.jeca.2022.e00247

Journal Article Type Article
Acceptance Date Mar 19, 2022
Online Publication Date Apr 5, 2022
Publication Date 2022-06
Deposit Date Mar 21, 2022
Publicly Available Date Oct 27, 2022
Journal Journal of Economic Asymmetries
Print ISSN 1703-4949
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 25
Article Number e00247
DOI https://doi.org/10.1016/j.jeca.2022.e00247
Keywords Productivity convergence; Labor; FDI; Human capital
Public URL https://hull-repository.worktribe.com/output/3952914

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Copyright Statement
© 2022 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license<br /> (http://creativecommons.org/licenses/by-nc-nd/4.0/).





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