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The Chinese Economy and Income Inequality among East Asian Countries

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  • Sumie Sato

    (Graduate School of Economics, Kobe University)

  • Mototsugu Fukushige

    (Graduate School of Economics, Osaka University)

Abstract

Using the Atkinson inequality measure of income distribution, we analyze the impact of China as a single country and examine the effect of its domestic income inequality on total income inequality among East Asian countries. First, we find that China's domestic income inequality exacerbated income inequality among East Asian countries from the 1980s, and this effect became even more pronounced from 1990. Second, the growth of China's per capita GDP had an equalizing effect on income distribution in a framework of ASEAN + China, but this effect was reversed around 1997. However, relative to higher income countries such as Japan and South Korea, China's per capita GDP remains low, and although China has contributed to income inequality in the area, it has recently had a more equalizing effect.

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Bibliographic Info

Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 10-06.

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Length: 24 pages
Date of creation: Feb 2010
Date of revision:
Handle: RePEc:osk:wpaper:1006

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Web page: http://www.econ.osaka-u.ac.jp/
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Keywords: East Asia; China; income inequality; free trade agreement; harmonious society;

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