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Rural Household Income in China: Spatial-Temporal Disparity and Its Interpretation

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    This paper investigates the spatial-temporal disparity evident in rural household incomes at the provincial level in China in the period 1978-2007. The research is introduced through a framework comprising the transitional processes of decentralization, marketization, urbanization, and globalization. The research uses Moran’s I index and the spatial regression model. Research results show a clear spatial-temporal disparity in rural household incomes in China in the post-reform era, whereby the eastern provinces possess higher rural household incomes in comparison to the lower rural household incomes of the inland provinces. This disparity is attributed to the joint influence of processes of marketization, urbanization, and globalization upon household incomes derived from the non-agricultural industries. Decentralization proves to be non-significant in explaining the disparity in rural household incomes across China, as a result of the agricultural income generated from the limited household land allocated to each rural household.

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    File URL: http://swopec.hhs.se/hacerc/papers/hacerc2012-021.pdf
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    Paper provided by China Economic Research Center, Stockholm School of Economics in its series Working Paper Series with number 2012-21.

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    Length: 29 pages
    Date of creation: 18 Apr 2012
    Date of revision:
    Handle: RePEc:hhs:hacerc:2012-021
    Contact details of provider: Postal: China Economic Research Center, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
    Phone: +46-8-736 90 00
    Fax: +46-8-31 81 86
    Web page: http://www.hhs.se/en/Research/Institutes/SCERI/

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    1. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
    2. Yang, Dennis Tao, 2000. "Education and Allocative Efficiency: Household Income Growth during Rural Reforms in China," Working Papers 00-17, Duke University, Department of Economics.
    3. Steve Snyder & Wen S. Chern, 2009. "The impact of remittance income on rural households in China," China Agricultural Economic Review, Emerald Group Publishing, vol. 1(1), pages 38-57, February.
    4. Taylor, J Edward & Rozelle, Scott & de Brauw, Alan, 2003. "Migration and Incomes in Source Communities: A New Economics of Migration Perspective from China," Economic Development and Cultural Change, University of Chicago Press, vol. 52(1), pages 75-101, October.
    5. M. Ruth & K. Donaghy & P. Kirshen, 2006. "Introduction," Chapters, in: Regional Climate Change and Variability, chapter 1 Edward Elgar.
    6. Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2002. "Growth, inequality, and poverty in rural China: the role of public investments," Research reports 125, International Food Policy Research Institute (IFPRI).
    7. Gustafsson, Bjorn & Shi, Li, 2002. "Income inequality within and across counties in rural China 1988 and 1995," Journal of Development Economics, Elsevier, vol. 69(1), pages 179-204, October.
    8. Luc Anselin & Sanjeev Sridharan & Susan Gholston, 2007. "Using Exploratory Spatial Data Analysis to Leverage Social Indicator Databases: The Discovery of Interesting Patterns," Social Indicators Research, Springer, vol. 82(2), pages 287-309, June.
    9. Shujie Yao, 1997. "Industrialization and spatial income inequality in rural China, 1986-92," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 5(1), pages 97-112, 05.
    10. McMillan, John & Whalley, John & Zhu, Lijing, 1989. "The Impact of China's Economic Reforms on Agricultural Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 781-807, August.
    11. Hare, Denise, 1994. "Rural nonagricultural activities and their impact on the distribution of income: Evidence from farm households in Southern China," China Economic Review, Elsevier, vol. 5(1), pages 59-82.
    12. Xiaolan Fu & V. N. Balasubramanyam, 2005. "Exports, Foreign Direct Investment and Employment: The Case of China," The World Economy, Wiley Blackwell, vol. 28(4), pages 607-625, 04.
    13. Lerong Yu & Renfu Luo & Linxiu Zhang, 2007. "Decomposing Income Inequality and Policy Implications in Rural China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 15(2), pages 44-58.
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