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How Does Globalisation Affect Regional Inequality within A Developing Country? Evidence from China

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Author Info

  • Xiaobo Zhang
  • Kevin Zhang

Abstract

Developing countries are increasingly concerned about effects of globalisation on regional inequality. This paper develops an empirical method for decomposing the contributions of two major driving forces of globalisation, foreign trade and foreign direct investment (FDI), on regional inequality and applies it to China. Even after controlling for many other factors, globalisation is still found to be an important factor contributing to the widening regional inequality. The paper ends by investigating the role of factor market segmentations in aggravating the distributional effect of changing regional comparative advantages in the process of globalisation.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/713869425
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 39 (2003)
Issue (Month): 4 ()
Pages: 47-67

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Handle: RePEc:taf:jdevst:v:39:y:2003:i:4:p:47-67

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Related research

Keywords: globalization; openness; Foreign Direct Investment (FDI); regional inequality; spatial inequality; China; Chinese economy;

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