The Regional Economics Applications Laboratory
Announces a Seminar by:

Xiangwei Sun

Nanchang University,China

 "Analysis on Regional Economic Growth in China
- Spatial Panel  Model and Prefecture-level Data"*

* Co-authored with Fei Chen




Davenport Hall


Abstract: In this article, to explore the economy growth performance at prefecture-level in China, following Erutr and Kock (2007) and Elhost et. al. (2010), we adopt a spatial-expanded neoclassic Solow growth model, and Spatial Durbin Model panel data model. First, we identified that the spatial-time-period two way fixed effect best fit for spatial- time panel data in China. Second, we set SDM to reflect economy growth convergence in China, to explore the spatial spillover effect and linear relationship between initial economy level and growth in China. Result shows that the spatial spillover exists not only in economy growth of neighbors, but also in initial economy level of neighbors. Furthermore, to control the underling heterogeneity cross China, we exclude 5 provinces in west of China. Then regression analysis and comparison analysis shows that, after controlling spatial heterogeneity, the spatial spillover effect change differently for different variable. Specifically, spatial spillover effect of initial economy level change much more than of growth, which means that initial economy level is more sensitive to spatial heterogeneity. On the other hand, after excluding west region in China, the convergence presents a slower speed than the one calculated from whole China sample..
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