Half a world : regional inequality in five great federations
AbstractThepaper studies regional (spatial) inequality in the five most populous countries in the world: China, India, the United States, Indonesia, and Brazil in the period 1980-2000. They are all federations or quasi-federations composed of entities with substantial economic autonomy. Two types of regional inequalities are considered: Concept 1 inequality, which is inequality between mean incomes (GDP per capita) of states/provinces, and Concept 2 inequality, which is inequality between population-weighted regional mean incomes. The first inequality speaks to the issue of regional convergence, the second, to the issue of overall inequality as perceived by citizens within a nation. All three Asian countries show rising inequality in terms of both concepts in the 1990s. Divergence in income outcomes is particularly noticeable for the most populous states/provinces in China and India. The United States, where regional inequality is the least, shows further convergence. Brazil, with the highest level of regional inequality, displays no trend. A regression analysis fails to establish robust association between the usual macroeconomic variables and the two types of regional inequality.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 3699.
Date of creation: 01 Sep 2005
Date of revision:
Inequality; Governance Indicators; Poverty Impact Evaluation; Rural Poverty Reduction; Services&Transfers to Poor;
Other versions of this item:
- Branko Milanovic, 2004. "Half a World: Regional inequality in five great federations," Urban/Regional 0404002, EconWPA.
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- I3 - Health, Education, and Welfare - - Welfare and Poverty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-14 (All new papers)
- NEP-CNA-2005-12-14 (China)
- NEP-CWA-2005-12-14 (Central & Western Asia)
- NEP-DEV-2005-12-14 (Development)
- NEP-GEO-2005-12-14 (Economic Geography)
- NEP-SEA-2005-12-14 (South East Asia)
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