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Urbanization, Urban-Biased Policies, and Urban-Rural Inequality in China, 1987-2001

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  • Ming Lu
  • Zhao Chen

Abstract

Post-reform economic policies in China have been biased toward urban residents and have contributed to the increasing urban-rural inequality. Analysis of the provincial panel data during 1987-2001 shows that urbanization significantly narrowed the urban-rural inequality. We also find that interprovincial migration, economic opening, and governmental participation in economic activity are contributing to the expanding urban-rural inequality. The structure of governmental expenditure is also found to have significant effects on urban-rural inequality.

Suggested Citation

  • Ming Lu & Zhao Chen, 2006. "Urbanization, Urban-Biased Policies, and Urban-Rural Inequality in China, 1987-2001," Chinese Economy, Taylor & Francis Journals, vol. 39(3), pages 42-63, May.
    • Handle: RePEc:mes:chinec:v:39:y:2006:i:3:p:42-63
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    Cited by:

    1. Zhao, Mengxue & Yuan, Zhihang & Chan, Hon S., 2023. "Housing wealth and household carbon emissions: The role of homeownership in China," Ecological Economics, Elsevier, vol. 212(C).
    2. Wang, Wei & Wu, Yuzhe & Choguill, Charles, 2021. "Prosperity and inclusion: The impact of public housing supply on urban inclusive growth in China," Land Use Policy, Elsevier, vol. 105(C).
    3. Iris Claus & Les Oxley & Ming Lu & Guanghua Wan, 2014. "Urbanization And Urban Systems In The People'S Republic Of China: Research Findings And Policy Recommendations," Journal of Economic Surveys, Wiley Blackwell, vol. 28(4), pages 671-685, September.
    4. Lu, Haiyan & Zhao, Pengjun & Hu, Haoyu & Zeng, Liangen & Wu, Kai Sheng & Lv, Di, 2022. "Transport infrastructure and urban-rural income disparity: A municipal-level analysis in China," Journal of Transport Geography, Elsevier, vol. 99(C).
    5. Song, Yang, 2014. "What should economists know about the current Chinese hukou system?," China Economic Review, Elsevier, vol. 29(C), pages 200-212.
    6. Wang, Xiang & Shao, Shuai & Li, Ling, 2019. "Agricultural inputs, urbanization, and urban-rural income disparity: Evidence from China," China Economic Review, Elsevier, vol. 55(C), pages 67-84.
    7. He, Ming & Chen, Yang & van Marrewijk, Charles, 2021. "The effects of urban transformation on productivity spillovers in China," Economic Modelling, Elsevier, vol. 95(C), pages 473-488.
    8. Tang, Le & Sun, Shiyu, 2022. "Fiscal incentives, financial support for agriculture, and urban-rural inequality," International Review of Financial Analysis, Elsevier, vol. 80(C).
    9. Wang, Siliang & Tan, Shukui & Yang, Shengfu & Lin, Qiaowen & Zhang, Lu, 2019. "Urban-biased land development policy and the urban-rural income gap: Evidence from Hubei Province, China," Land Use Policy, Elsevier, vol. 87(C).
    10. Yong Liu & Cuihong Long, 2021. "Urban and Rural Income Gap: Does Urban Spatial Form Matter in China?," SAGE Open, , vol. 11(1), pages 21582440211, March.
    11. Dong, Xiao-Ying & Hao, Yu, 2018. "Would income inequality affect electricity consumption? Evidence from China," Energy, Elsevier, vol. 142(C), pages 215-227.
    12. Ma, Yong & Chen, Diandian, 2020. "Openness, rural-urban inequality, and happiness in China," Economic Systems, Elsevier, vol. 44(4).
    13. Cem Çağrı Dönmez & Abdulkadir Atalan, 2019. "Developing Statistical Optimization Models for Urban Competitiveness Index: Under the Boundaries of Econophysics Approach," Complexity, Hindawi, vol. 2019, pages 1-11, November.
    14. Furong Jin & Keun Lee, 2017. "Dynamics of the growth–inequality nexus in China: roles of surplus labor, openness, education, and technical change in province-panel analysis," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 20(1), pages 1-25, January.
    15. Ming Lu & Shiqing Jiang, 2008. "Labor Market Reform, Income Inequality and Economic Growth in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(6), pages 63-80, November.
    16. Liu, Qiyang & Lucas, Karen & Marsden, Greg & Liu, Yang, 2019. "Egalitarianism and public perception of social inequities: A case study of Beijing congestion charge," Transport Policy, Elsevier, vol. 74(C), pages 47-62.
    17. Ming LU & Hong GAO, 2011. "Labour market transition, income inequality and economic growth in China," International Labour Review, International Labour Organization, vol. 150(1-2), pages 101-126, June.

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