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Forging Ahead and Falling Behind: Changing Regional Inequalities in Post‐reform China

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  • Max Lu
  • Enru Wang

Abstract

This study analyzes the evolution of China’s regional inequalities during the reform period of 1978–1998 based on three geographical scales, both output and livelihood indicators of economic well‐being and three measures of inequality. The results indicate that interprovincial and regional inequalities declined between 1978 and 1990, but have widened steadily since 1990. Urban‐rural disparity diminished before 1984, then experienced a decade‐long surge afterwards to peak in 1994 at a much higher level and since 1994, it has been declining again. The levels of regional inequalities in China appear to be sensitive to changes in government development strategies and regional policies. Differential growth of the provincial economies shaped by the coast‐oriented and urban‐biased development strategies as well as selective open‐door policy implemented by the Chinese government after the reform is the key to understanding the wax and wane in China’s regional inequalities. This paper discusses the factors that account for the changing regional inequalities in post‐reform China and argues that government policies are likely to continue to influence the future trajectories of inequality change.

Suggested Citation

  • Max Lu & Enru Wang, 2002. "Forging Ahead and Falling Behind: Changing Regional Inequalities in Post‐reform China," Growth and Change, Wiley Blackwell, vol. 33(1), pages 42-71.
    • Handle: RePEc:bla:growch:v:33:y:2002:i:1:p:42-71
    DOI: 10.1111/0017-4815.00179
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    Cited by:

    1. Henderson, Daniel J. & Tochkov, Kiril & Badunenko, Oleg, 2007. "A drive up the capital coast? Contributions to post-reform growth across Chinese provinces," Journal of Macroeconomics, Elsevier, vol. 29(3), pages 569-594, September.
    2. Tsun Se Cheong & Yanrui Wu, 2012. "Intra-Provincial Inequality in China: An Analysis of County-Level Data," Economics Discussion / Working Papers 12-17, The University of Western Australia, Department of Economics.
    3. Andrés Rodríguez-Pose & Nicholas Gill, 2004. "Is There a Global Link between Regional Disparities and Devolution?," Environment and Planning A, , vol. 36(12), pages 2097-2117, December.
    4. Jeffrey Zax, 2016. "Provincial valuations of human capital in urban China, inter-regional inequality and the implicit value of a Guangdong hukou," ERSA conference papers ersa16p693, European Regional Science Association.
    5. Huaqun Li & Kingsley E. Haynes, 2011. "Economic Structure and Regional Disparity in China: Beyond the Kuznets Transition," International Regional Science Review, , vol. 34(2), pages 157-190, April.
    6. Yiu Por Chen & Mingxing Liu & Qi Zhang, 2006. "Development of Financial Intermediation and the Dynamics of Rural-Urban Inequality: China, 1978-98," WIDER Working Paper Series RP2006-65, World Institute for Development Economic Research (UNU-WIDER).
    7. Jr-Tsung Huang & Chun-Chien Kuo & An-Pang Kao, 2003. "The Inequality of Regional Economic Development in China between 1991 and 2001," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 1(3), pages 273-285.
    8. Jiayue Liu & Ying Hu & Jing Xie & Bo Li, 2022. "Does cultural diversity contribute to the sustainable development of trade? Empirical evidence from 288 Chinese cities," Growth and Change, Wiley Blackwell, vol. 53(1), pages 432-451, March.
    9. Patricio Aroca & Dong Guo & Geoffrey J. D. Hewings, 2006. "Spatial Convergence in China: 1952-99," WIDER Working Paper Series RP2006-89, World Institute for Development Economic Research (UNU-WIDER).
    10. Y.H. Dennis Wei & Xinyue Ye, 2009. "Beyond Convergence: Space, Scale, And Regional Inequality In China," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 100(1), pages 59-80, February.
    11. Huaqun Li & Kingsley Haynes, 2012. "Foreign direct investment and China's regional inequality in the era of new regional development strategy," Regional Science Policy & Practice, Wiley Blackwell, vol. 4(3), pages 279-300, August.
    12. Tian, Xu & Zhang, Xiaoheng & Zhou, Yingheng & Yu, Xiaohua, 2016. "Regional income inequality in China revisited: A perspective from club convergence," Economic Modelling, Elsevier, vol. 56(C), pages 50-58.
    13. Wasim, Summerina & Munir, Kashif, 2017. "Regional Disparity and Decentralization in Pakistan: A Decomposition Analysis," MPRA Paper 83444, University Library of Munich, Germany.
    14. Per Knutsson & Madelene Ostwald, 2023. "A Process-Oriented Sustainable Livelihoods Approach–A Tool For Increased Understanding of Vulnerability, Adaptation and Resilience," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 28(1), pages 1-20, October.
    15. Jie Gu & Suhong Zhou & Xinyue Ye, 2016. "Uneven Regional Development Under Balanced Development Strategies: Space-Time Paths of Regional Development in Guangdong, China," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(5), pages 596-610, December.
    16. Li, Chao & Gibson, John, 2013. "Rising Regional Inequality in China: Fact or Artifact?," World Development, Elsevier, vol. 47(C), pages 16-29.
    17. Robert Huggins & Shougui Luo & Piers Thompson, 2014. "The competitiveness of China's Leading Regions: Benchmarking Their Knowledge-based Economies," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 105(3), pages 241-267, July.
    18. Yehua Dennis Wei & Xinyue Ye, 2004. "Regional Inequality in China: A Case Study of Zhejiang Province," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(1), pages 44-60, February.
    19. Ricardo Machado Ruiz, 2006. "Polarizações e desigualdades: desenvolvimento regional na China (1949-2000)," Textos para Discussão Cedeplar-UFMG td299, Cedeplar, Universidade Federal de Minas Gerais.
    20. Celine Bonnefond, 2014. "Growth Dynamics And Conditional Convergence Among Chinese Provinces: A Panel Data Investigation Using System Gmm Estimator," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(4), pages 1-25, December.
    21. Qi Guo & Canfei He, 2015. "Evolution of Production Space and Regional Industrial Structures in China," Papers in Evolutionary Economic Geography (PEEG) 1521, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2015.
    22. José Villaverde & Adolfo Maza & Bala Ramasamy, 2010. "Provincial Disparities in Post‐reform China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(2), pages 73-95, March.
    23. Qiaolong Huang & Yu Yvette Zhang & Qin Chen & Manxiu Ning, 2021. "Does Air Pollution Decrease Labor Supply of the Rural Middle-Aged and Elderly?," Sustainability, MDPI, vol. 13(5), pages 1-17, March.

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