Disparity in factor contributions between coastal and inner provinces in post-reform China

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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  • Tung Liu
  • Kui-Wai Li

Related Research Unit(s)


Original languageEnglish
Pages (from-to)449-470
Journal / PublicationChina Economic Review
Issue number4
Publication statusPublished - 2006


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. © 2006 Elsevier Inc. All rights reserved.

Research Area(s)

  • Mainland China, Physical and human capital, Productivity, Regional disparity