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Wealth Inequality, Governance and Economic Growth in China

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  • Tian Aw Yong

Abstract

Recently, there has been an increasing interest from policymakers, advocates and researchers on the extent to which the growth of the economy can impact income inequality. This research has been focused on the relationship between these variables. The author has recognized the need to focus on wealth as the income indicator, as well as the importance of studying wealth inequality (WI). This is more viable and important than researching income inequality, as this has been studied extensively, as has the impact that governance policies have on the growth of a country’s economy. For the purpose of examining these variables, data from 30 selected Chinese provinces has been used. The panel dataset from 2000–2012 has been extracted from Credit Suisse. This study has predominantly investigated the impact of wealth inequality on economic growth (EG). The study has made use of the GMM estimation system in order to suggest that wealth inequality has a negative impact on the EG of China. Moreover, this empirical investigation has revealed the fact that the impact of wealth inequality on EG has been mitigated by an improved quality of governance.

Suggested Citation

  • Tian Aw Yong, 2020. "Wealth Inequality, Governance and Economic Growth in China," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 7(2), pages 235-241.
    • Handle: RePEc:aoj:ajeaer:v:7:y:2020:i:2:p:235-241:id:2192
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