Disparity in Factor Contributions between Coastal and Inner Provinces in Post-Reform China

22 Pages Posted: 29 Nov 2015

See all articles by Tung Liu

Tung Liu

Ball State University - Department of Economics

Kui-Wai Li

City University of Hong Kong (CityU) - Department of Economics & Finance

Date Written: 2006

Abstract

The paper discusses China's post-reform regional economic growth imbalance relative to input disparity in technology, physical and human capital. Financial sources and types of ownership are used to construct physical capital. Technology is measured by innovation investment, and human capital is constructed from schooling years per capita. The results show that domestic bank loans and foreign-owned enterprises are important in coastal provinces, while state appropriation and state-owned enterprises are important in inner provinces. Technology and foreign investment have a larger impact on output growth in coastal provinces. Human capital is endogenous for coastal provinces, but is exogenous for inner provinces.

Keywords: Mainland China; Regional disparity; Physical and human capital; Productivity

JEL Classification: C22; I22; O18; O47; O53; P24

Suggested Citation

Liu, Tung and Li, Kui-Wai, Disparity in Factor Contributions between Coastal and Inner Provinces in Post-Reform China (2006). China Economic Review, Vol. 17, 2006, Available at SSRN: https://ssrn.com/abstract=2696313

Tung Liu

Ball State University - Department of Economics ( email )

Muncie, IN 47306-0340
United States
765-285-5360 (Phone)
765-285-4313 (Fax)

Kui-Wai Li (Contact Author)

City University of Hong Kong (CityU) - Department of Economics & Finance ( email )

Hong Kong

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