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Globalization, Liberalization And Income Inequality: The Case Of China

Author

Listed:
  • JINJUN XUE

    (Graduate School of Economics, Nagoya University Furo-cho, Chikusa-ku, Nagoya 464-8601, Japan)

  • CHULIANG LUO

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

  • SHI LI

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

Abstract

This paper studies the mutual effects of globalization, liberalization and income inequality using a case study of China. Comparing the trends of economic growth and income distribution, we found that the economic reform and opening-up policy promoted China's rapid growth while inducing an expansion in income disparity. We also found that the income gap had been a force driving China's high growth in its earlier transition period but began to be an obstacle as the Chinese economy became more globalized and liberalized. To enhance future economic development, China must reduce this inequality.

Suggested Citation

  • Jinjun Xue & Chuliang Luo & Shi Li, 2014. "Globalization, Liberalization And Income Inequality: The Case Of China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 59(01), pages 1-21.
    • Handle: RePEc:wsi:serxxx:v:59:y:2014:i:01:n:s0217590814500027
    DOI: 10.1142/S0217590814500027
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    References listed on IDEAS

    as
    1. Gustafsson,Björn A. & Shi,Li & Sicular,Terry (ed.), 2008. "Inequality and Public Policy in China," Cambridge Books, Cambridge University Press, number 9780521870450.
    2. Mistiaen, Johan A. & Ravallion, Martin, 2003. "Survey compliance and the distribution of income," Policy Research Working Paper Series 2956, The World Bank.
    3. Li,Shi & Sato,Hiroshi & Sicular,Terry (ed.), 2013. "Rising Inequality in China," Cambridge Books, Cambridge University Press, number 9781107002913.
    4. AfDB AfDB, . "Annual Report 2012," Annual Report, African Development Bank, number 461.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Almas Heshmati & Biwei Su & Seon-Ae Kim, 2015. "Measurement and Analysis of Well-Being in Developed Regions in China," China Economic Policy Review (CEPR), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-22, June.
    2. Shi Li & Terry Sicular & Finn Tarp, 2018. "Inequality in China: Development, transition, and policy," WIDER Working Paper Series wp-2018-174, World Institute for Development Economic Research (UNU-WIDER).
    3. Shi Li & Terry Sicular & Finn Tarp, 2018. "Inequality in China: Development, transition, and policy," WIDER Working Paper Series 174, World Institute for Development Economic Research (UNU-WIDER).
    4. Doan, Ha Thi Thanh & Wan, Guanghua, 2017. "Globalization and the Labor Share in National Income," ADBI Working Papers 639, Asian Development Bank Institute.
    5. Sudhanshu K. MISHRA, 2017. "Almost equi-marginal principle based composite index of globalization: China, India and Pakistan," Journal of Economic and Social Thought, KSP Journals, vol. 4(3), pages 335-351, Seprember.
    6. Onur Özdemir, 2020. "The handicap for enhanced solidarity across advanced economies: The greater the economic openness higher the unequal distribution of income," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(4), pages 585-632, December.
    7. Jagannath Mallick, 2020. "Does Global Economic Integration affect Labour Income Share in India?," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(2), pages 291-309, June.

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    More about this item

    Keywords

    Income distribution; Gini coefficient; China; good inequality and bad inequality; Chinese Household Income Project (CHIP); JEL Classification: C30; JEL Classification: I24; JEL Classification: I28; JEL Classification: J31; JEL Classification: O15; JEL Classification: R23;
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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