Productivity growth of the cities of Jiangsu province, China: a Kaldorian approach

Marta Spreafico, John S. L. Mccombie, Sixiang Xu

Risultato della ricerca: Contributo in rivistaArticolo in rivista

2 Citazioni (Scopus)

Abstract

This paper considers the determinants of economic growth of the cities of Jiangsu province, China, adopting a Kaldorian approach. It is found that there is a close correlation between the growth of non-industry and industry (Kaldor’s first law) that provides indirect evidence for the export-base theory. The paper discusses two competing explanations of the foundations of the Verdoorn law (Kaldor’s second law), which, in its simplest form, is the relationship between industrial productivity and output growth. It also considers the static–dynamic Verdoorn law paradox. This arises from the fact that estimating the Verdoorn law in log-levels often gives statistically insignificant estimates of the Verdoorn coefficient while the use of growth rates gives significant values of around one half. The results show that this does not occur when data for the cities are used. A plausible explanation for the paradox is that it results from spatial aggregation bias. It is also found that inter-province urban productivity disparities first increase, but subsequently decrease over the period considered.
Lingua originaleEnglish
pagine (da-a)1-22
Numero di pagine22
RivistaInternational Review of Applied Economics
DOI
Stato di pubblicazionePubblicato - 2017

Keywords

  • China
  • Cities of Jiangsu province
  • Economics and Econometrics
  • Kaldor’s laws
  • Static–dynamic Verdoorn law paradox
  • Static–dynamic Verdoorn law paradox
  • productivity growth

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