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Regional convergence clubs in China: identification and conditioning factors

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Abstract

This paper investigates club convergence in income per capita of 329 prefecture-level city regions in China over a period of 1990 to 2014. A nonlinear time-varying factor model is adopted to examine convergence trends as the model allows for transitional heterogeneity and divergence from the actual growth path. The study further explores the driving forces of convergence clubs using an ordered response model. Four convergence clubs are identified, showing no geographic regularity in club member locations. The highest income club and the lowest income club tend to converge strongly, whereas two middle-income clubs converge weakly. The findings indicate that initial conditions, sectorial characteristics, preferential development policy, general government spending, network effect, spatial effect, and the role of globalization are the significant factors responsible for the formation of club convergence in China.

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Notes

  1. http://opinionator.blogs.nytimes.com/2014/06/27/inequality-is-not-inevitable/?_php=true&_type=blogs&_r=1.

  2. https://www.ft.com/content/3c521faa-baa6-11e5-a7cc-280dfe875e28.

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Funding

This study was funded by the National Natural Science Foundation of China (grant number 41771124), the Humanities and Social Sciences Research Fund of Ministry of Education in China (Grant Number 17YJC790198), the philosophy and social science program in Henan province of China (Grant Number 2017BJJ009), Young Top-notch Talent Program of Henan University of Economics and Law (Grant Number hncjzfdxqnbjrc201602), and Outstanding scholars of philosophy and Social Sciences in Colleges and Universities of Henan province (2015-YXXZ-17).

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Authors and Affiliations

  1. College of Resource and Environments, Collaborative Innovation Center of Urban- Rural Coordinated Development in Henan, Henan University of Economics and Law, Zhengzhou, 450046, Henan, China

    Weili Zhang

  2. Department of Geography, The Prentice Institute for Global Population and Economy, University of Lethbridge, Lethbridge, AB, T1K 3M4, Canada

    Wei Xu

  3. College of Economics, Henan University of Economics and Law, Zhengzhou, 450046, Henan, China

    Xiaoye Wang

Authors
  1. Weili Zhang
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  2. Wei Xu
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  3. Xiaoye Wang
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Contributions

Weili Zhang and Wei Xu co-designed and performed the research. Weili Zhang provided the method of data analysis, Wei Xu modified the draft, and Xiaoye Wang designed our program. All authors read and approved the final manuscript.

Corresponding author

Correspondence to Wei Xu.

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Conflict of interest

Author Weili declares that she has no conflict of interest. Author Wei declares that he has no conflict of interest. Author Xiaoye declares that she has no conflict of interest.

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This article does not contain any studies with human participants or animals performed by any of the authors.

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Zhang, W., Xu, W. & Wang, X. Regional convergence clubs in China: identification and conditioning factors. Ann Reg Sci 62, 327–350 (2019). https://doi.org/10.1007/s00168-019-00898-y

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  • DOI: https://doi.org/10.1007/s00168-019-00898-y

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