Time series tests of convergence of Chinese regional and provincial economic performance

This paper uses multivariate time series methods to investigate convergence of Chinese real GDP per capita at regional and provincial levels over the period 1952 – 2001. We reject convergence across regions. However, we find evidence of common trends among the provincial real incomes within Eastern and Central regions respectively while the cointegration relationships within the Western region are not sufficient to impose a common trend. We conclude that, contrary to the announced development policy of the Chinese government, the regions of China do not share a common development path.