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Regional Growth and Income Inequality in China After 1978: A Spatial Econometric Approach

Author

Listed:
  • Yongbok Jeon

    (Korea University)

  • Tae Hwan Yoo

    (Kyung Hee University)

Abstract

Based on Kaldorian approach to economic growth and development, this study aims at providing an alternative perspective and explanation of the pattern of regional growth and income inequality in China. Using spatial econometric techniques, it empirically demonstrates that the Chinese regional economic growth has been demand-led and that regional dependence among the Chinese provinces is weak. In order to rebound the current trend of increasing regional income inequality, the present study suggests the rehabilitation of active roles played by local governments in developing regional economies and progressive income distribution policy to support effective demand.

Suggested Citation

  • Yongbok Jeon & Tae Hwan Yoo, 2009. "Regional Growth and Income Inequality in China After 1978: A Spatial Econometric Approach," Korean Economic Review, Korean Economic Association, vol. 25, pages 105-131.
    • Handle: RePEc:kea:keappr:ker-20090630-25-1-05
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    References listed on IDEAS

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    Cited by:

    1. Chien-Chiang Lee & Chi-Chuan Lee & Chun-Ping Chang, 2015. "Globalization, Economic Growth and Institutional Development in China," Global Economic Review, Taylor & Francis Journals, vol. 44(1), pages 31-63, March.

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    More about this item

    Keywords

    Spatial Econometrics; Income Inequality in China; Demandled Growth; Spatial Autocorrelation;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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