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China'S Regional Inequality And Related Long†Term Policies

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  • Xiao†Ping Zheng

Abstract

This paper presents a simple model to study the reasons for China's regional inequality and proposes a few long†term policies for solving the problem. Based on an empirical estimation, it is shown that the great regional inequality of the recent years is caused by high disparities m investment between the provincial capital, in population growth and in regional relative price indices. It is argued that such regional inequality could be reduced in the long term by adjusting China's coastal†favorite regional development strategy, by partially relaxing strict regulations on inter†regional migration, and by driving further forward the transformation towards a mature market economy.

Suggested Citation

  • Xiao†Ping Zheng, 1997. "China'S Regional Inequality And Related Long†Term Policies," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 9(2), pages 115-128, September.
  • Handle: RePEc:bla:revurb:v:9:y:1997:i:2:p:115-128
    DOI: 10.1111/j.1467-940X.1997.tb00100.x
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    Cited by:

    1. Takahiro Akita, 2000. "Decomposing Regional Income Inequality Using Two-Stage Nested Theil Decomposition Method," Working Papers EMS_2000_02, Research Institute, International University of Japan.

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