On the measurement of spatial differentials in economic growth: an application of a shift-share method for China in 1985-94

Spatial differentials in economic growth has become an important economic, social and political issue in China in her rapid industrialization drive over the last two decades. Measuring such differentials and quantifying their relevant components are important for policy making on regional development. This paper shows how a traditional shift-share method can be used for these purposes by use of provincial level panel data on GDP growth in China for the period 1985-94. The results provide some essential information on the diversity and complexity of the Chinese economy under transition.