Abstract:This study adopts flexible Fourier unit root test proposed by Enders and Lee (2004, 2009) to revisit the tendency towards convergence in real per-capita income among provinces in China. The empirical results of Flexible unit root test provide ample evidence with a high degree of confidence about two things. First, most of Eastern provinces converge and Western provinces converge to their own specific steady states. Second, our empirical results also provide no evidence of convergence among North-Eastern provinces and Central provinces. It is important for macroeconomic policy and forecasting for China Economies and these results can be an available explanation to policymakers holding long-term implications.
Keywords: Flexible Fourier Unit Root Test Real Output Coverge (原文刊于Economic Computation and Economic Cybernetics and Research, 2012, Vol.46, Iss.2: pp.127-142. (SSCI))