This paper examines the convergence process of industrial productivity between Chinese
regions. Both s - and ß - convergences are investigated using a panel data set of 30
provinces and autonomous regions over the period 1985-1999. Unconditional s - and ß -
convergence methods fail to detect productivity convergence over the whole sample
period, although they suggest convergence during a sub-period 1985-1990. The estimates
of a human capital enhanced production function, with the constant return to scale
constraint, show that productivity gaps between Chinese regions declined during 1985-
1999 with a rate of convergence of around 1.3% per annum. Similar results are also found
when the data are disaggregated into three broader geographic regions.