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The Chinese Economy and Income Inequality among East Asian Countries

Author

Listed:
  • Sumie Sato

    (Graduate School of Economics, Kobe University)

  • Mototsugu Fukushige

    (Graduate School of Economics, Osaka University)

Abstract

Using the Atkinson inequality measure of income distribution, we analyze the impact of China as a single country and examine the effect of its domestic income inequality on total income inequality among East Asian countries. First, we find that China's domestic income inequality exacerbated income inequality among East Asian countries from the 1980s, and this effect became even more pronounced from 1990. Second, the growth of China's per capita GDP had an equalizing effect on income distribution in a framework of ASEAN + China, but this effect was reversed around 1997. However, relative to higher income countries such as Japan and South Korea, China's per capita GDP remains low, and although China has contributed to income inequality in the area, it has recently had a more equalizing effect.

Suggested Citation

  • Sumie Sato & Mototsugu Fukushige, 2010. "The Chinese Economy and Income Inequality among East Asian Countries," Discussion Papers in Economics and Business 10-06, Osaka University, Graduate School of Economics.
  • Handle: RePEc:osk:wpaper:1006
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    File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/1006.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    East Asia; China; income inequality; free trade agreement; harmonious society;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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