Time series analysis of income convergence in China

In this article, we examine both pre- and post-reform economic convergence behaviour in China using the time-series procedures developed in the Hobijn and Franses (2000). Our results are striking: First, we find a number of extremely small convergence clubs for both the pre- and post-reform periods, and these clubs cannot be characterized by geography or the extent of policy preference level. Second, our results show that economic reform led to more <italic>divergence</italic>.