| Summary: | 碩士 === 國立東華大學 === 國際經濟研究所 === 96 === This paper uses Beyaert and Camacho's (2008) TAR panel unit root test to examine income convergence among Chinese provinces during the reform period 1978--1999. They expand Caner and Hansen's (2001) univariate TAR unit root test into panel data model and show income convergence in a non-linear framework. Therefore, we attempt to investigate whether income levels exist a non-linear convergence process under different economic conditions on per capita real income. In this paper we divide our provinces sample into three groups based on two criteria: provincial income and location. The main empirical finding is that there is no linear income convergence in six provincial income groups but there exist non-linear income convergence except high-income provincial group. In addtion, middle-income group is consistent with ``global convergence' under different regimes. The empirical results from east, west, middle-income, and low-income groups posses ``partial convergence' when income exceeds the threshold value. Finally, this paper rejects the empirical results of previous studies which they show a linear income convergence process in China. We contribute a new idea towards the issue of income convergence in China.
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