Abstract This paper examines real convergence and divergence of China’s regional relate price level by a new panel threshold auto regression model with 1979-2010 panel CPI data. The result shows relative price level convergence occurs in east, west and middle region. The difference of regional relative price level is gradually shrinking in China. It is advised that government establish the unified market by eliminating the market barriers and strengthening regional coordination.
2013, Vol. 1 
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