Westerlund, Joakim; Edgerton, David L.; Opper, Sonja - In: Journal of Asian Economics 21 (2010) 4, pp. 333-344
In a recent paper Pedroni and Yao (2006) present strong evidence suggesting that Chinese provincial per-capita output is diverging, a result that goes against the Chinese government's goal of a balanced wealth-creation across provinces. This paper provides an in-depth analysis of the reasoning...