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Globalization and Regional Income Inequality: Evidence from within China

  • Ming Lu
  • Guanghua Wan
  • Zhao Chen

China’s recent accession to the WTO is expected to accelerate its integration into the world economy, which aggravates concerns over the impact of globalization on the already rising inter-region income inequality in China. This paper discusses China’s globalization process and estimates an income generating function, incorporating trade and FDI variables. It then applies the newly developed shapley value decomposition technique to quantify the contributions of globalization, along with other variables, to regional inequality. [Discussion Paper No. 2004/10]

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Date of creation: Nov 2010
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Handle: RePEc:ess:wpaper:id:3179
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  18. Xavier Sala-i-Martin, 2001. "The disturbing 'rise' of global income inequality," Economics Working Papers 616, Department of Economics and Business, Universitat Pompeu Fabra, revised Apr 2002.
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