A production model is proposed to explain why economic growth may lead to regional inequality and club divergence. Economic growth starts from a few centres and spills over to other regions. The spillovere ect diminishes as distance rises, causing club formation with a clear geographical pattern.

Being the world's largest developing economy, China's successful economic performance since 1978 has had a powerful impact on the global economy. Its open policy features an evolutionary process, involving the gradual liberalization of foreign exchange, international trade and foreign direct investments. This paper evaluates how this evolutionary process has contributed to China's economic success in comparison with the development experiences of the Asian newly industrialized economies (NIEs). It concludes that despite the economic crisis in 1997-98, China and the NIEs represent a successful development model, which is built upon openness and huge investments in physical and human capital.

This paper studies the spatial differences of grain production efficiencies in China using a panel data set on 30 provinces (cities) for the period 1987-92. A stochastic frontier production function is estimated to derive the technical efficiencies across the regions. The results suggest that technical inefficiencies are significant with remarkable provincial and zonal differentials. The marginal productivities of factors and their convergence (divergence) over time, the decomposition of total factor productivity, and the effects of major determinants on technical inefficiencies are also studied in detail.

This paper uses a shift-share method to quantify the components of economic growth and structural changes in employment and investments at both the national and regional levels. The results indicate that rapid economic growth has been characterized by significant shifts in employment and investments between industries in China. Such structural changes have a distinct regional pattern which has important policy implications regarding spatial disparities in economic growth and income. The results shed some important light on the understanding of Deng's development thought that is formalized in this paper as a multi-tier and multi-stage development strategy for a large developing economy.