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Geographically Heterogeneous Spatial Inequality in the People’s Republic of China: A Luminosity-Based Analysis of Prefectural Cities and Counties

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  • YILIN CHEN

    (Graduate School of International Development, Nagoya University, Nagoya, Japan)

Abstract

This study examines regional income and inequality in the People’s Republic of China from 2001 to 2020 using high-quality nighttime light (NTL) data to help proxy for the gross domestic product (GDP). The NTL-based dataset for 332 Chinese prefectural cities and 2,813 county-level units that integrates GDP with luminosity measurements reveals three key facts: (i) Inequality derived from luminosity-based GDP data aligns more closely with the official GDP-based inequality trends, showing no clear downward trend, unlike the luminosity data alone; (ii) spatial dependence significantly influences patterns of economic development and economic disparities; and (iii) there is a geographic heterogeneity in spatial spillovers, with stronger agglomeration effects only in coastal areas where these effects promote economic development and reduce inequality. These insights highlight the varied impacts of regional development strategies for achieving common prosperity in the People’s Republic of China’s coastal, central, western, and northeastern regions.

Suggested Citation

  • Yilin Chen, 2025. "Geographically Heterogeneous Spatial Inequality in the People’s Republic of China: A Luminosity-Based Analysis of Prefectural Cities and Counties," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 42(02), pages 55-81, June.
  • Handle: RePEc:wsi:adrxxx:v:42:y:2025:i:02:n:s0116110525400086
    DOI: 10.1142/S0116110525400086
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    Keywords

    nighttime light; People’s Republic of China; regional heterogeneity; regional inequality; spatial dependence;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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