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Fifty Years Of Regional Inequality In China: A Journey Through Revolution, Reform And Openness

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Kanbur, Ravi
Zhang, Xiaobo

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Abstract

This paper constructs and analyses a long run time series for regional inequality in China from the Communist Revolution to the present. There have been three peaks of inequality in the last fifty years, coinciding with the Great Famine of the late 1950s, the Cultural Revolution of the late 1960s and 1970s, and finally the period of openness and global integration in the late 1990s. Econometric analysis establishes that regional inequality is explained in the different phases by three key variables--the ratio of heavy industry to gross output value, the degree of centralization, and the degree of openness.

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Paper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 7236.

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Date of creation: 2001
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Handle: RePEc:ags:cudawp:7236

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Keywords: Inequality; polarisation; decentralization; industrialization; openness; globalization; Chinese economy; Political Economy; D63; 018; P27;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," World Bank Economic Review, Oxford University Press, vol. 11(1), pages 33-57, January.
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  7. Kai-yuen, Tsui, 1998. "Factor Decomposition of Chinese Rural Income Inequality: New Methodology, Empirical Findings, and Policy Implications," Journal of Comparative Economics, Elsevier, vol. 26(3), pages 502-528, September. [Downloadable!] (restricted)
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  12. Rozelle Scott, 1994. "Rural Industrialization and Increasing Inequality: Emerging Patterns in China's Reforming Economy," Journal of Comparative Economics, Elsevier, vol. 19(3), pages 362-391, December. [Downloadable!] (restricted)
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  15. Xiaobo Zhang & Ravi Kanbur, 2001. "What difference do polarisation measures make? an application to China," The Journal of Development Studies, Taylor and Francis Journals, vol. 37(3), pages 85-98, January. [Downloadable!] (restricted)
  16. Phillips, Peter C B & Ouliaris, S, 1990. "Asymptotic Properties of Residual Based Tests for Cointegration," Econometrica, Econometric Society, vol. 58(1), pages 165-93, January. [Downloadable!] (restricted)
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  17. Perron, Pierre, 1989. "The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis," Econometrica, Econometric Society, vol. 57(6), pages 1361-1401, November. [Downloadable!] (restricted)
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  18. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-85, November. [Downloadable!] (restricted)
  19. Kanbur, Ravi, 2000. "Income distribution and development," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 13, pages 791-841 Elsevier. [Downloadable!] (restricted)
  20. Jian, Tianlun & Sachs, Jeffrey D. & Warner, Andrew M., 1996. "Trends in regional inequality in China," China Economic Review, Elsevier, vol. 7(1), pages 1-21. [Downloadable!] (restricted)
    Other versions:
  21. Li, Xiao-Ming, 2000. "The Great Leap Forward, Economic Reforms, and the Unit Root Hypothesis: Testing for Breaking Trend Functions in China's GDP Data," Journal of Comparative Economics, Elsevier, vol. 28(4), pages 814-827, December. [Downloadable!] (restricted)
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  23. Khan, Azizur Rahman & Griffin, Keith & Riskin, Carl & Renwei, Zhao, 1993. "Sources of income inequality in post-reform China," China Economic Review, Elsevier, vol. 4(1), pages 19-35. [Downloadable!] (restricted)
  24. Tsui Kai-yuen, 1993. "Decomposition of China's Regional Inequalities," Journal of Comparative Economics, Elsevier, vol. 17(3), pages 600-627, September. [Downloadable!] (restricted)
  25. Shang-Jin Wei, 1993. "Open door policy and China's rapid growth: evidence from city-level data," Pacific Basin Working Paper Series 93-09, Federal Reserve Bank of San Francisco.
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Mitra, Pradeep & Yemtsov, Ruslan, 2006. "Increasing inequality in transition economies : is there more to come?," Policy Research Working Paper Series 4007, The World Bank. [Downloadable!]
  2. Diao, Xinshen & Fan, Shenggen & Zhang, Xiaobo, 2002. "How China's WTO accession affects rural economy in the less-developed regions," TMD discussion papers 87, International Food Policy Research Institute (IFPRI). [Downloadable!]
  3. Basu, Kaushik, 2006. "Participatory Equity, Identity, and Productivity: Policy Implications for Promoting Development," Working Papers 06-06, Cornell University, Center for Analytic Economics. [Downloadable!]
    Other versions:
  4. You, Liangzhi, 2008. "A Tale of Two Countries: Spatial and Temporal Patterns of Rice Productivity in China and Brazil," Working Papers RP2008/30, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  5. Kanbur, Ravi & Zhang, Xiaobo, 2003. "Spatial Inequality in Education and Health Care in China," CEPR Discussion Papers 4136, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  6. Sylvie Demurger & Jeffrey D. Sachs & Wing Thye Woo & Shuming Bao, Gene Chang & Andrew Mellinger, 2002. "Geography, Economic Policy, and Regional Development in China," NBER Working Papers 8897, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. Chotikapanich, Duangkamon & Prasada Rao, D.S. & Tang, KamKi, 2006. "Estimating Income Inequality in China Using Grouped Data and the Generalized Beta Distribution," Working Papers RP2006/134, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  8. Maasoumi, Esfandiar & Wang, Le, 2006. "Economic Reform, Growth and Convergence in China," Departmental Working Papers 0602, Southern Methodist University, Department of Economics. [Downloadable!]
    Other versions:
  9. Anderson, Kym & Huang, Jikun & Ianchovichina, Elena, 2003. "Long-run impacts of China's WTO accession on farm-nonfarm income inequality and rural poverty," Policy Research Working Paper Series 3052, The World Bank. [Downloadable!]
  10. Zhai, Fan & Hertel, Thomas, 2005. "Impacts of the Doha Development Agenda on China : the role of labor markets and complementary education reforms," Policy Research Working Paper Series 3702, The World Bank. [Downloadable!]
  11. Anderson, Kym & Huang, Jikun & Ianchovichina, Elena, 2004. "Will China's WTO Accession Worsen Rural Poverty?," CEPR Discussion Papers 4196, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  12. Zhang, Yin & Wan, Guanghua, 2005. "Why Do Poverty Rates Differ From Region to Region? The Case of Urban China," Working Papers RP2005/56, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  13. Reuter & Ulrich, 2004. "The Effects of Intraregional Disparities on Regional Development in China: Inequality Decomposition and Panel-Data Analysis," Econometric Society 2004 Far Eastern Meetings 716, Econometric Society. [Downloadable!]
  14. Diao, Xinshen & Fan, Shenggen & Yu, Bingxin & Kanyarukiga, Sam, 2007. "Agricultural growth and investment options for poverty reduction in Rwanda:," IFPRI discussion papers 689, International Food Policy Research Institute (IFPRI). [Downloadable!]
  15. Yang, Ling & Lahr, Michael/L, 2008. "Interregiona;Decomposition of labor productivity differences in China, 1987-1997," MPRA Paper 8313, University Library of Munich, Germany. [Downloadable!]
  16. Cao, Heping & Ligon, Ethan & Meng, Xiangyi, 2006. "Can Growth Compensate Inequality and Risk?---a welfare analysis for Chinese households," 2006 Annual meeting, July 23-26, Long Beach, CA 21458, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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