Economic Openness And Income Inequality: Chinese Provincial Evidence In The 1990s
AbstractChina in the 1990s was a large labor-abundant country at its early phase of global integration. This paper develops a framework that applies a Gini-coefficient–related measure of income inequality to the Heckscher–Ohlin model and analyzes the effects on income inequality of economic openness to foreign trade and capital. Our findings from generalized least squares regression of Chinese provincial data suggest that increased openness tends to lower income inequality in China of the 1990s. Ignoring provincial differentials, China's income inequality decreases as the trade-to-GDP ratio and the interaction between FDI and fiscal deficit increase respectively, though income inequality increases with the deficit-to-GDP ratio and the interaction between trade and financial deepening. With respect to the province-specific effect, however, trade openness and FDI tend to increase income inequality when they are examined jointly with the interaction of financial deepening and government budget balance.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by World Scientific Publishing Co. Pte. Ltd. in its journal China Economic Policy Review.
Volume (Year): 01 (2012)
Issue (Month): 02 ()
Contact details of provider:
Web page: http://www.worldscinet.com/cepr/cepr.shtml
Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- P45 - Economic Systems - - Other Economic Systems - - - International Linkages
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim).
If references are entirely missing, you can add them using this form.