Economic Change and Restructuring

, Volume 45, Issue 4, pp 317–336 | Cite as

An empirical study of openness and convergence in labor productivity in the Chinese provinces



Based on the theoretical framework of the Solow growth model, this paper employs a dynamic panel data approach to examine the impact of openness on growth and convergence in labor productivity in the Chinese provinces during the period 1984–2008. The study finds that regional openness has a significantly positive effect on regional growth in labor productivity in the Chinese provinces. When regional heterogeneity and regional openness are accounted for, the study finds fast conditional convergence in labor productivity across the Chinese provinces. As a byproduct, this study also estimates the structural parameters of the aggregate production function in the case of China. In sum, the major findings of this study lend strong support to the claim that openness promotes growth of labor productivity in China.


Openness Economic growth Convergence Productivity 

JEL Classification

O47 O53 


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Copyright information

© Springer Science+Business Media, LLC. 2011

Authors and Affiliations

  1. 1.College of International Finance and CommerceShanghai International Studies UniversityShanghaiChina

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