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Globalization and Regional Income Inequality: Evidence from within China

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  • Ming Lu
  • Guanghua Wan
  • Zhao Chen

Abstract

China’s recent accession to the WTO is expected to accelerate its integration into the world economy, which aggravates concerns over the impact of globalization on the already rising inter-region income inequality in China. This paper discusses China’s globalization process and estimates an income generating function, incorporating trade and FDI variables. It then applies the newly developed shapley value decomposition technique to quantify the contributions of globalization, along with other variables, to regional inequality. [Discussion Paper No. 2004/10]

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Bibliographic Info

Paper provided by eSocialSciences in its series Working Papers with number id:3179.

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Date of creation: Nov 2010
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Handle: RePEc:ess:wpaper:id:3179

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Keywords: globalization; inequality; decomposition; Shapley value; China;

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  1. Xavier Sala-i-Martin, 2002. "The World Distribution of Income (estimated from Individual Country Distributions)," NBER Working Papers 8933, National Bureau of Economic Research, Inc.
  2. Ben-David, Dan, 1993. "Equalizing Exchange: Trade Liberalization and Income Convergence," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 653-79, August.
  3. Xavier Sala-i-Martin, 2002. "The disturbing "rise" of global income inequality," Discussion Papers 0102-44, Columbia University, Department of Economics.
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Cited by:
  1. Zhao Chen & Yu Jin & Ming Lu, 2005. "Economic Opening and Industrial agglomeration in China," Industrial Organization 0511012, EconWPA.
  2. Zhang, Xiaobo, 2006. "Fiscal Decentralization and Political Centralization in China: Implications for Growth and Inequality," Working Paper Series RP2006/93, World Institute for Development Economic Research (UNU-WIDER).
  3. Kris James Mitchener & Se Yan, 2010. "Globalization, Trade & Wages: What Does History tell us about China?," NBER Working Papers 15679, National Bureau of Economic Research, Inc.
  4. Yin Zhang & Guanghua Wan, 2006. "Globalization and the Urban Poor in China," Dundee Discussion Papers in Economics 196, Economic Studies, University of Dundee.
  5. Wan, Guanghua & Lu, Ming & Chen, Zhao, 2006. "The Inequality-Growth Nexus in the Short and Long Runs: Empirical Evidence from China," Working Paper Series RP2006/92, World Institute for Development Economic Research (UNU-WIDER).

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