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What has caused regional income inequality in China? Effects of 10 socioeconomic factors on per capita income

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  • Weiming Li

    (Minzu University of China)

  • Zhaoyang Cai

    (Minzu University of China)

  • Shixiong Cao

    (Minzu University of China)

Abstract

This study analyzes the driving factors behind regional income inequality to provide an important reference for China and other developing countries and to support the formulation of more effective regional development policies. The study used data from 625 county-level administrative units in China in 2017 and conducted a total factor analysis of China's regional income based on 10 economic dimensions using spatially explicit regression methods. The results show that commerce, population footprint, industrialization, and investment are the main factors that affected a Chinese region’s income, but different factors have different degrees of influence in different regions. The impact of economic institutions (developing an institutionally diverse market economy) on income cannot be ignored. Based on our findings, China should give local governments more autonomy, so they can formulate strategies that account for local constraints and opportunities, thereby increasing their chances of decreasing regional income inequality.

Suggested Citation

  • Weiming Li & Zhaoyang Cai & Shixiong Cao, 2021. "What has caused regional income inequality in China? Effects of 10 socioeconomic factors on per capita income," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13403-13417, September.
    • Handle: RePEc:spr:endesu:v:23:y:2021:i:9:d:10.1007_s10668-020-01218-7
    DOI: 10.1007/s10668-020-01218-7
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    Cited by:

    1. Jiahong Guo & Zhongqi Yu & Zihao Ma & Duanyang Xu & Shixiong Cao, 2022. "What factors have driven urbanization in China?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 6508-6526, May.
    2. Huanqi Luo & Yanfei Shu & Zhaoyang Cai, 2023. "Investigating the multidimensional relative poverty in China: Evidence from Nanling Yao ethnic group area," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(11), pages 12357-12370, November.
    3. Guo, Jiahong & Lai, Xiaoying & Lu, Chenxi & Cao, Shixiong, 2022. "What has caused China’s economic growth?," Economic Systems, Elsevier, vol. 46(2).

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