China's regional inequality, 1952–1985

Tsui, Kai Yuen

doi:10.1016/0147-5967(91)90102-y

Cited by 140 publications

(8 citation statements)

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“…The author posits that economic growth increases the country's tax base, and since the revenue from the tax can be reinvested to reduce regional disparities, levels of inequality will fall. Other studies look at the effect of a public policy or trade openness on regional inequality in China (Tsui, 1991;Wei, 2013;Zhang & Zhang, 2003). Most of these studies agree that openness has contributed to growth at the expense of widening income gaps.…”

Section: Gini and Economic Growthmentioning

confidence: 99%

The income inequality, financial depth and economic growth nexus in China

2019

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Income inequality has increased in China despite rapid economic growth. Income inequality could impinge on future development, leading to social tension or political instability. Our study investigates the short‐run and long‐run relationship between three important macroeconomic indicators—income inequality, economic growth and financial depth. We utilise a two‐step procedure of ARDL bounds and Granger causality for the analysis. The bounds test indicates the presence of a cointegrating relationship between income inequality, financial depth and economic growth in the long run. In the second step, we utilise the Granger causality approach. Results show a bidirectional causality between financial depth‐growth and a unidirectional causality between inequality‐growth in the short run. In the long run, results reveal that growth and financial depth determine Gini. Our findings provide support for the inequality‐widening effect due to economic growth and higher credit provided to the private sector. We find no evidence of inequality‐narrowing or income‐equalising effect in the long run for the period of study. It is possible that the government's inclusive growth policies which started less than a decade ago have not taken effect for us to capture the inverted U‐shape income equalising effect significantly.

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Section: Gini and Economic Growthmentioning

confidence: 99%

The income inequality, financial depth and economic growth nexus in China

2019

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“…The result can be identified by the increasing figures of the Gini Coefficient, CV, and Theil coefficient from [ Figure 1] to [ Figure 4], which is the opposite of the research results of Lardy (1980), Paine (1981) and Zhang et al (2001), who said that the income disparity was converged over the period, while it coincided with the research of Tsui (1991), Jian et al (1996) and Kanbur and Zhang (2005). They said the income disparity gap became wider during that period.…”

Section: The First Periodmentioning

confidence: 69%

“…Whether the Chinese government's regional development policy narrows or widens regional disparity, it is an issue that many scholars and experts have dealt starting with the well-known debate by Lardy (1976Lardy ( , 1980 and Donnithorne (1972Donnithorne ( , 1976 in the 1970s. After that, many scholars and experts discusses this topic (Paine, 1981;Cannon, 1990;Lyons, 1991;Tsui, 1991Tsui, , 1996Kanbur and Zhang, 2005;Liu and Li, 2006;Fan et al, 2009;Gries and Redlin, 2009;Cai et al, 2010).…”

Section: Literature Reviewmentioning

confidence: 99%

“…In addition, since the publication of statistic data of the population census conducted in 1982, indexes with regard to health, education, and human development, like infant mortality or illiteracy, have been widely utilized as variables (World Bank, 1984;Dreze and Sen, 1989;Bramall, 2001;Li and Zhu, 2006;Wang, 2006;Sicular et al, 2007;Keidel, 2009). Often-used other resources include Gross Value of Industrial and Agricultural Outputs (Riskin, 1987;Lee, 2000), Net Material Product and National Income Utilized (Lyons, 1991;Tsui, 1991 Even though people used the same analysis method, they often produced different research results, along with having reliably issues (Paine, 1981;Riskin, 1987;Tsui, 1996;Kanbur and Zhang, 1999;Im, 2005).…”

Section: Literature Reviewmentioning

confidence: 99%

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Effects of regional development policies on the resolution of income disparity in China

Jang

Jeong

2016

JEFS

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Using thirty provincial panel-data from 1949 to 2010 that is separated into four periods, this paper examines the details of major regional development policies in practice by China so far since its foundation, and focuses on the analysis of how those policies influenced the resolution of inequality between regions through Gini coefficient analysis, coefficient of variation analysis and Theil index analysis. The results of income inequality analysis in Mao's time show that income inequality coefficients are ups and downs. In the age of the reform and open-door policy, the income disparity in the eastern region drastically decreased, which in turn reduced the national income disparity among regions. However, from the 1990s the income convergences among regions in eastern coastal areas began to cease, which resulted in spreading income disparity among the regions all over China. Even though coefficients of income inequality indices have decreased since the mid-2000s, it may take more observation to decide whether such phenomenon is the result of the policy of 'building of a harmonious society' pursued by Hu Jintao.

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“…The level, causes, and development of income inequalities in both developing and developed countries have received considerable, interdisciplinary attention, resulting in an extensive literature. In recent years, that literature has sought to measure inequality and examine its evolution over time (Lewis and Williams ; Yuen Tsui ; Martin and Sunley ; Hudson 2007; Pike and Tomaney ; Wei and Liefner ). The spatial dimension of inequality has also attracted interest from policymakers and government, since regional disparities in economic activities, incomes, and other economic indicators boost overall income inequality.…”

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confidence: 99%

Firm Dynamics, Institutional Context, And Regional Inequality Of Productivity In China

Zhou

Zhu

2017

Geographical Review

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This paper focuses on the issue of regional inequality in China. It seeks to move away from focusing on the relationship between factor accumulation and regional inequality towards an analytical framework that concentrates upon the ways in which regional inequality has articulated with factor productivity and firm dynamics, while acknowledging the role of institutional context. Based on one database on firm‐specific economic and financial variables, this paper measures factor productivity in China's manufacturing industry at the regional level, and decomposes it into various components. Empirical results confirm that regional inequality in terms of productivity have been declining in China. It also demonstrates that regional inequality has been fundamentally shaped by the regional institutional context, particularly in regard to the triple process of decentralization, globalization, and marketization, resulting in an enormous spatial variation of economic and institutional landscapes.

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China's regional inequality, 1952–1985

Cited by 140 publications

References 10 publications

The income inequality, financial depth and economic growth nexus in China

The income inequality, financial depth and economic growth nexus in China

Effects of regional development policies on the resolution of income disparity in China

Firm Dynamics, Institutional Context, And Regional Inequality Of Productivity In China

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