Test for Price Convergence across Provinces in China

• 발행기관: 한국자료분석학회
• 저자명: 심성훈(Sung-Hoon Sim)
• 간행물 정보: 『Journal of The Korean Data Analysis Society (JKDAS)』Vol.21 No.5, 2223~2237쪽, 전체 15쪽
• 주제분류: 자연과학 > 통계학
• 파일형태: PDF
• 발행일자: 2019.10.31

영문 초록

This paper tests the price convergence across 29 Chinese provinces during 1980~2017 by using pairwise approach. Our empirical findings reveal that the prices are not supportive of nationwide convergence because the results do not satisfy stationarity and cotrending restriction at the same time. The club convergence cannot be also characterized by any grouping methods such as geographic, economic classifications, and policy preference level. Thus, the presence of provincial border effects is evident, and Chinese provinces would not be characterized as open economies even within a nation. By contrast, the result for a subgroup is marginally supportive of the hypothesis of price convergence. In this regard, ease of labor and capital mobility arising from rapid economic growth in this region may lead to market integration and thus generate a price convergence. As a whole, a policy to lower the impact of the price disparity on local markets would be necessary for market integration.

목차

1. Introduction

2. Methodology

3. Empirical results

4. Conclusion

References

키워드

CPI price convergence pairwise approach club