In this paper, I undertake an examination of the tendency towards convergence in the real per capita income and the per capita GDP among 30 Chinese provinces during the period 1952-1996. Real per capita incomes in Chinese regions did display strong convergence while the per capita GDP did not show either strong convergence or divergence during the first phase of central planning, 1952-67. During the Cultural Revolution, 1967-78, regional disparities in per capita GDP widened, but the per capita income did not show strong convergence or divergence. Not until market-oriented reforms started in 1978 did regional per capita incomes and regional per capita GDP begin to converge sharply simultaneously, a phenomenon which strongly associated with the rise in rural productivity during the perio...[ Read more ]

In this paper, I undertake an examination of the tendency towards convergence in the real per capita income and the per capita GDP among 30 Chinese provinces during the period 1952-1996. Real per capita incomes in Chinese regions did display strong convergence while the per capita GDP did not show either strong convergence or divergence during the first phase of central planning, 1952-67. During the Cultural Revolution, 1967-78, regional disparities in per capita GDP widened, but the per capita income did not show strong convergence or divergence. Not until market-oriented reforms started in 1978 did regional per capita incomes and regional per capita GDP begin to converge sharply simultaneously, a phenomenon which strongly associated with the rise in rural productivity during the period 1978-84. However, the story changed somewhat during the second stage of reforms from 1984 to 92. With further deepening of the urban reforms, in particular, when more and more coastal provinces were allowed to integrate themselves with the outside world, the regional per capita income inequality widened although the regional per capita GDP maintained the tendency towards convergence. Starting in 1990, the regional disparities began to increase both in per capita income and in per capita GDP.