Globalization and Regional Income Inequality--Evidence from within China
AbstractChina¡¯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. It is found that (a) globalization constitutes a positive and substantial share to regional inequality and the share rises over time; (b) capital is one of the largest and increasingly important contributor to regional inequality; (c) economic reform characterized by privatization exerts a significant impact on regional inequality; and (d) the relative contributions of education, location, urbanization and dependency ratio to regional inequality have been declining.
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Bibliographic InfoPaper provided by EconWPA in its series Econometrics with number 0511014.
Length: 28 pages
Date of creation: 16 Nov 2005
Date of revision:
Note: Type of Document - pdf; pages: 28
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Other versions of this item:
- Wan, Guanghua & Lu, Ming & Chen, Zhao, 2004. "Globalization and Regional Income Inequality: Evidence from within China," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Ming Lu & Guanghua Wan & Zhao Chen, 2010. "Globalization and Regional Income Inequality: Evidence from within China," Working Papers id:3179, eSocialSciences.
- C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
- C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
- C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
- C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
- C5 - Mathematical and Quantitative Methods - - Econometric Modeling
- C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-11-19 (All new papers)
- NEP-CNA-2005-11-19 (China)
- NEP-GEO-2005-11-19 (Economic Geography)
- NEP-TRA-2005-11-19 (Transition Economics)
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.:
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