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Interprovincial inequality in China

  • Christopher Candelaria
  • Mary Daly
  • Galina Hale

In this Economic Letter, we document the increasing income inequality among Chinese provinces over the past two decades. Our discussion highlights three important facts. First, economic growth has lifted living standards throughout China, with all provinces gaining in absolute terms. Second, economic growth has benefited some provinces more than others, increasing regional income inequality. Third, no single explanation can account for the steady increase in inequality among provinces over time. These observations suggest that China, like many industrialized nations, will continue to struggle to meet its growth goals while distributing the benefits of an expanding economy more equally.

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Article provided by Federal Reserve Bank of San Francisco in its journal FRBSF Economic Letter.

Volume (Year): (2009)
Issue (Month): apr10 ()

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Handle: RePEc:fip:fedfel:y:2009:i:apr10:n:2009-13
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  1. Yao, Shujie & Zhang, Zongyi, 2001. "On Regional Inequality and Diverging Clubs: A Case Study of Contemporary China," Journal of Comparative Economics, Elsevier, vol. 29(3), pages 466-484, September.
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