The Coast-Noncoast Income Gap, Productivity, and Regional Economic Policy in China
نویسنده
چکیده
JEL Bibliographic Code O15, O18, O47, O53 We postulate that inferior factor productivity in China’s noncoastal provinces is a principal reason for their lower economic growth despite high investment rates relative to coastal provinces. Using the residual from a fixed-effect Solow growth model for the years 1978-93, we find that TFP is roughly twice as high in the coastal provinces. We estimate that one variable subject to direct policy control, investment in higher education, helps explain the productivity gap and exhibits a very high rate of return, greater in noncoastal provinces. We estimate that investment in infrastructure has a moderate rate of return that is higher in coastal provinces, although investment in infrastructure may be necessary to attract and retain university graduates in the interior. The Coast-Noncoast Income Gap, Productivity, and Regional Economic Policy in China
منابع مشابه
The Coast-Noncoast Income Gap, Productivity, and Regional Economic Policy in China
JEL Bibliographic Code O15, O18, O47, O53 We postulate that inferior factor productivity in China’s noncoastal provinces is a principal reason for their lower economic growth despite high investment rates relative to provincial GDP. We flnd that TFP is roughly twice as high in the coastal provinces and estimate that investment in higher education and foreign direct investment help explain the p...
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