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| In this paper, we explore β-convergence of regional economic growth in panel data models with economic dependence. Using methods of spatial autocorrelation and spatial error, besides replace the spatial weight matrix with inter-regional linkages, we estimate the relation of market integration and regional economic growth from 1997-2011. Base on this, we establish three facts: The year of 2004 is a break point from 1997-2011, the process of market integration, the situation of regional economic growth and mutual effects of them all changed noticeably since then; In phase 1, there exists a trend of divergence, and the higher is the level of market integration, the larger is the disparity of regional economy; In phase 2, convergence effect arouse and the level of market integration has a negative correlation with regional economic discrepancy.We also confirm that the dynamic relationship of market integration and regional economic growth is determined by market power mainly. |
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| Keywords:Regional Economics; Market Integration; Regional Economic Growth; Spatial Econometrics |
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