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Multinational enterprises and regional inequality in China

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  • Greaney, Theresa M.
  • Li, Yao

Abstract

We examine spatial inequality in incomes and in the activities of multinational enterprises (MNE) in China from 1999 to 2013. We consider both interprovincial and urban-rural inequality using improved measurements of both regional average incomes and MNE activities. Although we find some common trends between spatial inequality in incomes and spatial inequality in MNE activities, our analysis of the determinants of urban-rural income inequality finds no evidence that MNEs are to blame for this type of inequality. We find limited evidence that MNEs reduce urban-rural income gaps, but mostly we conclude that they have no significant effect on these gaps.

Suggested Citation

  • Greaney, Theresa M. & Li, Yao, 2017. "Multinational enterprises and regional inequality in China," Journal of Asian Economics, Elsevier, vol. 48(C), pages 120-133.
  • Handle: RePEc:eee:asieco:v:48:y:2017:i:c:p:120-133
    DOI: 10.1016/j.asieco.2016.09.003
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    References listed on IDEAS

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    More about this item

    Keywords

    Spatial inequality; Urban-rural inequality; China; Foreign direct investment;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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