Centripetal forces in China's Economic Take-Off

Author/Editor:

Anuradha Dayal-Gulati ; Aasim M. Husain

Publication Date:

May 1, 2000

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper uses provincial time series data from China to empirically investigate two propositions relating to economic development: (i) that economic takeoff is associated with technological transfer through foreign direct investment (FDI); and (ii) that takeoff is accompanied, at least in the short term, by widening income inequality. The results indicate that FDI flows have increased the rate of convergence in per capita incomes across China’s provinces. However, the pattern of FDI, which has gone mainly to the relatively wealthy provinces, has caused different provinces to converge to different steady states.

Series:

Working Paper No. 2000/086

Subject:

English

Publication Date:

May 1, 2000

ISBN/ISSN:

9781451850871/1018-5941

Stock No:

WPIEA0862000

Pages:

36

Please address any questions about this title to publications@imf.org