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Comments and Discussion Comments and Discussion Young-Sook Nam: The paper by Wei Zhang achieves three objectives. First, it provides an overview of the Chinese governmentâs strategy for development of the western region. Second, it analyzes the nature and causes of changes in Chinaâs regional disparity. Third, it assesses whether the strategy of western development can narrow down this disparity and proposes an alternative strategy. As noted in the paper, the literature on changes in Chinaâs regional disparity over the past two decades is far from conclusive, and Zhang makes a valuable contribution to this research area by drawing policy implications for the development of the western region based on an empirical analysis of historical data. The paper presents several interesting ªndings on provincial income inequality. First, unconditional convergence is signiªcant only during the period from 1978 to 1984. Second, conditional convergence exists in all subperiods of the reform, after taking into account other factors such as domestic economic reform, openness, and geographical location. Third, domestic economic reform does not play a direct and signiªcant role in Chinaâs regional growth disparity during the entire period of the reform. Fourth, the effects of various degrees of openness are insigniªcant during
Asian Economic Papers – MIT Press
Published: Oct 1, 2004
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