TY - JOUR
T1 - Productivity growth of the cities of Jiangsu province, China: a Kaldorian approach
AU - Mccombie, John S. L.
AU - Spreafico, Marta
AU - Xu, Sixiang
PY - 2017
Y1 - 2017
N2 - 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 (Kaldorâs first law) that provides indirect evidence for the export-base theory. The paper discusses two competing explanations of the foundations of the Verdoorn law (Kaldorâs second law), which, in its simplest form, is the relationship between industrial productivity and output growth. It also considers the staticâdynamic 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.
AB - 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 (Kaldorâs first law) that provides indirect evidence for the export-base theory. The paper discusses two competing explanations of the foundations of the Verdoorn law (Kaldorâs second law), which, in its simplest form, is the relationship between industrial productivity and output growth. It also considers the staticâdynamic 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.
KW - China
KW - Cities of Jiangsu province
KW - Economics and Econometrics
KW - Kaldor’s laws
KW - Staticâdynamic Verdoorn law paradox
KW - Static–dynamic Verdoorn law paradox
KW - productivity growth
KW - China
KW - Cities of Jiangsu province
KW - Economics and Econometrics
KW - Kaldor’s laws
KW - Staticâdynamic Verdoorn law paradox
KW - Static–dynamic Verdoorn law paradox
KW - productivity growth
UR - http://hdl.handle.net/10807/110008
UR - http://www.tandf.co.uk/journals/titles/02692171.asp
U2 - 10.1080/02692171.2017.1351529
DO - 10.1080/02692171.2017.1351529
M3 - Article
SN - 0269-2171
SP - 1
EP - 22
JO - International Review of Applied Economics
JF - International Review of Applied Economics
ER -