A spatial analysis of inward FDI and urban–rural wage inequality in China

Wang, Hao; Fidrmuc, Ján; Luo, Qi

doi:10.1016/j.ecosys.2021.100902

Cited by 24 publications

(6 citation statements)

References 67 publications

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“…In addition to the results for China as a whole, this paper also presents results on the impact of various influencing mechanisms on various regions. While most of the studies have been conducted in the context of China as a whole, some have argued that Chinese policies should focus more on increasing other factors, such as investment in infrastructure development and public education, which could reduce rural-urban income inequality while attracting more FDI inflows [43,44]. From a regional perspective, the findings of this paper show that the impact varies by region.…”

Section: Discussionmentioning

confidence: 79%

The Impact of FDI on China’s Urban–Rural Income Gap

Shi

Chen²,

Tang³

et al. 2022

Sustainability

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Since the reform and opening up some forty years ago, China has suffered from a capital shortage problem. To both solve this problem and satisfy its economic and social needs, China has been bringing in foreign investment, much of which has gone toward economic reconstruction. However, with the continuous inflow of foreign direct investment (FDI) into China, not only has the gap between rich and poor become increasingly wide but, due to China’s unique dualistic economic structure, the gap between urban and rural areas also appears to be widening. This aspect of the problem has attracted the attention of scholars around the world, as it may affect the future sustainable development of China’s economy and society. Cognizant of the need for practical solutions, this study conducts a more in-depth study of the relationship between foreign direct investment and the urban–rural income gap in China. Based on a review of previous studies and panel data from 30 Chinese provinces, this paper argues that FDI will affect this income gap through mechanisms such as employment structure, industrial structure and international trade. The findings of this study suggest that FDI inflows will first improve income inequality between urban and rural Chinese at a point in time but then have a worsening effect. In addition, China’s three major economic zones are examined, with results showing that the overall impact of FDI on the urban–rural income gap in China displays an inverted ‘U’ curve. Today, the impact of FDI on the urban–rural income gap is on the right-hand side of the curve, with regional differences in its impact. Urban–rural income inequality in the eastern region responds the most to FDI.

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Section: Discussionmentioning

confidence: 79%

The Impact of FDI on China’s Urban–Rural Income Gap

Shi

Chen²,

Tang³

et al. 2022

Sustainability

View full text Add to dashboard Cite

show abstract

“…In order to verify the rationality of spatial Durbin model selected in this study, we first conducted Moran's I test and LM test. Moran's I test is widely used to verify the spatial correlation of variables and LM test provides suggestions for spatial model selections ( 34 ). Moran's I test results of household education burden and net transfer payment are −0.3215 (significant at 1% level) and −0.2852 (significant at 1% level), respectively.…”

Section: Resultsmentioning

confidence: 99%

Health Shocks and Household Education Burden—A Study From the Perspective of Relative Poverty Alleviation in China

Wang

Chu

2022

Front. Public Health

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Health shocks and household education burden influence levels of expenditure on healthcare and education, which are two major non-discretionary expenditures for households. From the perspective of relative poverty alleviation in China and based on the peer effects theory, this study uses the dataset from the rural areas in CFPS database and employs the spatial Durbin model and spatial DID model to investigate—when a household suffers health shocks—the influence of such impact on the education burden of closely related households and to test the effect of single rescue policy in this circumstance. Further, this study employs a spatial mediating effect model to analyze the spatial transmission mechanism. The results indicate that when a household has health shocks, it can aggravate the education burden of closely related households through inter-household social networks. The findings substantiate that the targets of different rescue policies have cross effects and that single rescue policy does not have significant effect on the targets of other policies. To avoid the situation where rescue policies operate in silos and to reduce the internal coordination cost between different policies within a system, a coordinating mechanism should be established between different rescue policies to better alleviate relative poverty.

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“…Although most of the authors point to the fragility of the official Chinese data, they agree in pointing out that, in aggregate terms, economic growth rates and technological momentum are notably higher than in other developing areas and there is an accelerated convergence (although still at a distance) with the richest ones. A synthetic fact that illustrates the relevance of China is that in 2020 the country became the sixth exporting power in the world; this is a significant fact derived from the high capacity to attract foreign capital and companies that seek lower relative wages and a lax relaxation in legislation, such as those concerning the environmental and ecological sphere [14][15][16].…”

Section: Cooperatives In the Face Of New Challengesmentioning

confidence: 99%

Management, Cooperatives and Sustainability: A New Methodological Proposal for a Holistic Analysis

Manera

Serrano

2022

Sustainability

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This article examines how the advent of the new globalisation and climate change requires us to transform the scientific paradigm of economics and, therefore, poses new challenges for analysis. In particular, it suggests the need for the incorporation of holistic and qualitative tools in order to improve management and economic and business impacts beyond the monetary aspect. Cooperatives are a good starting point because the social economy incorporates these features in its foundations.

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A spatial analysis of inward FDI and urban–rural wage inequality in China

Cited by 24 publications

References 67 publications

The Impact of FDI on China’s Urban–Rural Income Gap

The Impact of FDI on China’s Urban–Rural Income Gap

Health Shocks and Household Education Burden—A Study From the Perspective of Relative Poverty Alleviation in China

Management, Cooperatives and Sustainability: A New Methodological Proposal for a Holistic Analysis

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