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Regional Output Spillovers in China: Estimates from a VAR Model

Author

Listed:
  • Nicolaas Groenewold

    (Department of Economics, The University of Western Australia)

  • Guoping Lee

    (School of Economics and Finance, Xi'an Jiaotong University)

  • Anping Chen

    (School of Economics and Finance, Xi'an Jiaotong University)

Abstract
Interregional spillover effects are central to China’s growth policy; yet relatively little is known about the strength and duration of these spillovers and whether their characteristics have changed over time. This paper examines the spillover of output between the three commonly-used regions of China: coastal, central and western regions. We find that there are strong spillovers from the coastal region to both other regions, from the central region to the western region but that shocks to the western region have no flow-on effect for the other two regions. Thus a policy of developing the coastal region is likely to indirectly benefit the other two regions.

Suggested Citation

  • Nicolaas Groenewold & Guoping Lee & Anping Chen, 2005. "Regional Output Spillovers in China: Estimates from a VAR Model," Economics Discussion / Working Papers 05-05, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:05-05
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

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    3. Jian Zhang & Meixia Ren & Xin Lu & Yu Li & Jianjun Cao, 2022. "Effect of the Belt and Road Initiatives on Trade and Its Related LUCC and Ecosystem Services of Central Asian Nations," Land, MDPI, vol. 11(6), pages 1-18, June.
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    6. Yameng Wang & Zhe Chen & Xiumei Wang & Mengyang Hou & Feng Wei, 2021. "Research on the Spatial Network Structure and Influencing Factors of the Allocation Efficiency of Agricultural Science and Technology Resources in China," Agriculture, MDPI, vol. 11(11), pages 1-23, November.
    7. Robert Huggins & Shougui Luo & Piers Thompson, 2014. "The competitiveness of China's Leading Regions: Benchmarking Their Knowledge-based Economies," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 105(3), pages 241-267, July.
    8. Chun‐Yu Ho & Dan Li, 2008. "Rising regional inequality in China: Policy regimes and structural changes," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 245-259, June.
    9. Groenwold, Nicolaas & Lee, Guoping & Chen, Anping, 2008. "Inter-regional spillovers in China: The importance of common shocks and the definition of the regions," China Economic Review, Elsevier, vol. 19(1), pages 32-52, March.
    10. Nicolaas Groenewold & Guoping Lee & Anping Chen, 2006. "Inter-Regional Output Spillovers of Policy Shocks in China," Economics Discussion / Working Papers 06-26, The University of Western Australia, Department of Economics.
    11. Bai, Chong-En & Ma, Hong & Pan, Wenqing, 2012. "Spatial spillover and regional economic growth in China," China Economic Review, Elsevier, vol. 23(4), pages 982-990.
    12. Wang, Song & Yang, Canyu & Hou, Dailing & Dai, Liang, 2023. "How do urban agglomerations drive economic development? A policy implementation and spatial effects perspective," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1224-1238.
    13. Han, Feng & Ke, Shanzi, 2016. "The effects of factor proximity and market potential on urban manufacturing output," China Economic Review, Elsevier, vol. 39(C), pages 31-45.
    14. Hiroshi Sakamoto, 2011. "Inter-regional spillovers in Fukuoka Prefecture: Using VAR model," ERSA conference papers ersa11p360, European Regional Science Association.
    15. Herrmann-Pillath, Carsten & Libman, Alexander & Yu, Xiaofan, 2014. "Economic integration in China: Politics and culture," Journal of Comparative Economics, Elsevier, vol. 42(2), pages 470-492.
    16. Miguel A. Márquez & Julián Ramajo & Geoffrey JD. Hewings, 2015. "Regional growth and spatial spillovers: Evidence from an SpVAR for the Spanish regions," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 1-18, November.
    17. Nicolaas Groenewold & Guoping Lee & Anping Chen, 2006. "Inter-Regional Output Spillovers in China: Disentangling National from Regional Shocks," Economics Discussion / Working Papers 06-25, The University of Western Australia, Department of Economics.
    18. Huanhuan ZHENG & Qingyang GU, 2008. "Measuring Inter-Regional Trade Barriers," EcoMod2008 23800159, EcoMod.
    19. Shu-hen Chiang, 2018. "Assessing the Merits of the Urban-Led Policy in China: Spread or Backwash Effect?," Sustainability, MDPI, vol. 10(2), pages 1-14, February.
    20. Anping Chen & Mark D. Partridge, 2013. "When are Cities Engines of Growth in China? Spread and Backwash Effects across the Urban Hierarchy," Regional Studies, Taylor & Francis Journals, vol. 47(8), pages 1313-1331, September.

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    More about this item

    Keywords

    Regional Spillovers; China; regional growth;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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