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Income Inequality between Chinese Regions: Newfound Harmony or Continued Discord?

Author

Listed:
  • Lyhagen, Johan

    (Department of Statistics)

  • Rickne, Johanna

    (Research Institute of Industrial Economics (IFN))

Abstract

This paper develops an improved test of economic convergence or divergence using time series methods. The usefulness of the method is illustrated in an analysis of the growth pattern between Chinese regions in 1952–2007. Comparing all combinations of regional pairs, the analysis yields support for economic divergence in roughly half of the cases. In the other half, we instead find that regions have grown while maintaining stable income differences. As such, the results show the co-existence of divergence and conditional convergence among China's regions.

Suggested Citation

  • Lyhagen, Johan & Rickne, Johanna, 2011. "Income Inequality between Chinese Regions: Newfound Harmony or Continued Discord?," Working Paper Series 872, Research Institute of Industrial Economics.
  • Handle: RePEc:hhs:iuiwop:0872
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    Cited by:

    1. Chen, Anping & Groenewold, Nicolaas, 2018. "The regional effects of macroeconomic shocks in China," China Economic Review, Elsevier, vol. 48(C), pages 139-154.
    2. Lie Ma & Dandan Li & Xiaobo Tao & Haifeng Dong & Bei He & Xiaosu Ye, 2017. "Inequality, Bi-Polarization and Mobility of Urban Infrastructure Investment in China’s Urban System," Sustainability, MDPI, vol. 9(9), pages 1-19, September.
    3. Xiaosu Ye & Lie Ma & Kunhui Ye & Jiantao Chen & Qiu Xie, 2017. "Analysis of Regional Inequality from Sectoral Structure, Spatial Policy and Economic Development: A Case Study of Chongqing, China," Sustainability, MDPI, vol. 9(4), pages 1-17, April.
    4. Anping Chen & Nicolaas Groenewold, 2016. "Output Shocks In China: Do The Distributional Effects Depend On The Regional Source?," Economics Discussion / Working Papers 16-20, The University of Western Australia, Department of Economics.
    5. Truong Lam Do & Trung Thanh Nguyen & Ulrike Grote, 2022. "Livestock production and income inequality in rural Vietnam," Empirical Economics, Springer, vol. 62(2), pages 409-438, February.

    More about this item

    Keywords

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    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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