Convergence in labor productivity across provinces and production sectors in China

Empirical evidence is found for the β and σ convergence towards steady states of labor productivity across provinces production sectors in China based on estimates static, dynamic quintile panel data models. The pattern convergences to be asymmetric according quantile regression estimations. was more obvious when controls human capital, FDI, industrial concentration inequality were introduced robustness our analysis. While effects capital FDI are sectors, or higher rate lead divergence either simple Implications these findings clear. Policies that promote competition equal distribution better labour China.