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Trade and Rural-Urban Income Inequality: Evidence from China

Author

Listed:
  • Hao Wei
  • Sui Yang
  • Haoji Huang

    (School of Economics and Business Administration, Beijing Normal University, Beijing 100875, China)

Abstract

Using the provincial panel data from 1978 to 2007, this paper makes an empirical analysis of the relationship between international trade and rural-urban income inequality in China. The results show that international trade has a fundamental impact on rural-urban income inequality. For the whole country, the development of international trade from 1978 to 2007 enlarged the rural-urban income gap. During the three different periods (defined in section 3.3), the impact was also noticeable in terms of extent, direction and significance respectively at the national and regional levels. During the three periods, the relationship has an inverted ¡°U¡± shape for China as a whole, central China and western China, but for eastern China the relationship has a ¡°U¡± shape. At the same time, exports and imports have different influences on the rural-urban income gap in China, the influences were also different across regions; and the imports has had a more significant influence on these regions than exports has had.

Suggested Citation

  • Hao Wei & Sui Yang & Haoji Huang, 2012. "Trade and Rural-Urban Income Inequality: Evidence from China," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 7(4), pages 519-543, December.
    • Handle: RePEc:fec:journl:v:7:y:2012:i:4:p:519-543
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-001-012-0024-4
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    Citations

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    Cited by:

    1. Peng Bin, 2016. "Dynamic Development of Regional Disparity in Mainland China: An Experimental Study Based on a Multidimensional Index," Sustainability, MDPI, vol. 8(12), pages 1-28, December.
    2. Peng Bin & Andrea Fracasso, 2017. "Regional Consumption Inequality in China: An Oaxaca-Blinder Decomposition at the Prefectural Level," Growth and Change, Wiley Blackwell, vol. 48(3), pages 459-486, September.

    More about this item

    Keywords

    China; trade; imports; exports; rural-urban income gap;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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