The Inequality of Regional Economic Development in China between 1991 and 2001
This paper measures the unequal development of the regional economies in China and investigates the primary factors leading to the inequality. The official data on China's regional GDP and the regional GDP of three industrial sectors from 1991-2001, as reported in the China Statistical Yearbook and A Statistical Survey of China, are adopted to calculate and decompose the Gini coefficient for each year. The primary finding is that the levels of inequality in China's regional economies clearly showed a slight upward trend after 1991. The inequality of the overall GDP is primarily attributed to the between-group effect rather than to the within-group effect. It is also found that the regional inequality of the secondary industry sector's development accounted for half of the overall inequality. Thus, this study suggests that it is crucial for China to formulate and adhere to policies that will help it to develop the economy more equally among all areas and to develop the secondary industry sector among all regions/provinces in order to overcome the important issue of the inequality in regional economic development.
Volume (Year): 1 (2003)
Issue (Month): 3 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RCEA20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RCEA20|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Shujie Yao, 1997. "Decomposition of Gini coefficients by income factors: a new approach and application," Applied Economics Letters, Taylor & Francis Journals, vol. 4(1), pages 27-31.
- Chen, Jian & Fleisher, Belton M., 1996. "Regional Income Inequality and Economic Growth in China," Journal of Comparative Economics, Elsevier, vol. 22(2), pages 141-164, April.
- Jian, T & Sachs, J-D & Warner, A-M, 1995.
"Trends in Regional Inequality in China,"
518, Harvard - Institute for International Development.
- Shujie Yao & Jirui Liu, 1996. "Decomposition of Gini coefficients by class: a new approach," Applied Economics Letters, Taylor & Francis Journals, vol. 3(2), pages 115-119.
- Max Lu, 2002. "Forging Ahead and Falling Behind: Changing Regional Inequalities in Post-reform China," Growth and Change, Wiley Blackwell, vol. 33(1), pages 42-71.
- Tsui Kai-yuen, 1993. "Decomposition of China's Regional Inequalities," Journal of Comparative Economics, Elsevier, vol. 17(3), pages 600-627, September.
- John C. H. Fei & Gustav Ranis & Shirley W. Y. Kuo, 1978. "Growth and the Family Distribution of Income by Factor Components," The Quarterly Journal of Economics, Oxford University Press, vol. 92(1), pages 17-53.
- Chen, Baizhu & Feng, Yi, 2000. "Determinants of economic growth in China: Private enterprise, education, and openness," China Economic Review, Elsevier, vol. 11(1), pages 1-15.
- Yao, S. & Liu, J., 1995. "Uneven Development of Non-Farm Entreprises and Regional Income Inequality in Rural China," Papers 50, Portsmouth University - Department of Economics.
- Lee, Jongchul, 2000. "Changes in the source of China's regional inequality," China Economic Review, Elsevier, vol. 11(3), pages 232-245.
- Lambert, Peter J & Aronson, J Richard, 1993. "Inequality Decomposition Analysis and the Gini Coefficient Revisited," Economic Journal, Royal Economic Society, vol. 103(420), pages 1221-1227, September.
- C. Cindy Fan, 1997. "Uneven development and beyond: regional development theory in post-Mao China," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 21(4), pages 620-639, December.
- Paglin, Morton, 1975. "The Measurement and Trend of Inequality: A Basic Revision," American Economic Review, American Economic Association, vol. 65(4), pages 598-609, September.
- Dennis Tao Yang, 1999. "Urban-Biased Policies and Rising Income Inequality in China," American Economic Review, American Economic Association, vol. 89(2), pages 306-310, May.
- Mookherjee, Dilip & Shorrocks, Anthony F, 1982. "A Decomposition Analysis of the Trend in UK Income Inequality," Economic Journal, Royal Economic Society, vol. 92(368), pages 886-902, December.
When requesting a correction, please mention this item's handle: RePEc:taf:jocebs:v:1:y:2003:i:3:p:273-285. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.