Economic geography and inequality in China: Did improved market access widen spatial wage differences?

Lovely, Mary E.; Liang, Yang; Zhang, Hongsheng

doi:10.1016/j.chieco.2019.01.005

Cited by 9 publications

(6 citation statements)

References 24 publications

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“…Cosar and Demir (2016) and Cosar and Fajgelbaum (2016) consider the impact improvements in transportation infrastructure and internal geography when trade must pass through gateway locations with a focus on Turkey and China, respectively. Lovely et al (2019) link domestic trade costs to cross-provincial wage differences in China. While the aforementioned studies focus on specific countries, the use of domestic trade flows within the structural gravity model allows for a systematic analysis of the determinants of domestic trade costs and their implications for welfare and development.…”

Section: Argument 4 the Use Of Domestic Trade Flows Allows For Estima...mentioning

confidence: 99%

“…8 8 For example: for analysis of the “home bias” in the United States see Wolf (2000), Mayer and Head (2002), Hillberry and Hummels (2003), Millimet and Osang (2007), Head and Mayer (2010), Hillberry and Hummels (2012) and Yilmazkuday (2012); for the European Union see Nitsch (2000), Chen (2004) and Head and Mayer (2010); for OECD countries Wei (1996); for China see Young (2000), Golley et al. (2004), Poncet (2003, 2005), Holz (2009) and Hering and Poncet (2009); for Spain see Llano and Requena (2010); for France see Combes et al.…”

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confidence: 99%

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On the role of domestic trade flows for estimating the gravity model of trade

Yotov

2022

Contemporary Economic Policy

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The gravity equation is the workhorse model of trade. Despite solid theoretical foundations and clear gains from theory-consistent policy analysis, there are still gaps between gravity theory and empirics. This paper focuses on domestic trade flows, and I argue that there are significant benefits from adhering to theory by estimating gravity equations with domestic (in addition to international) trade flows. I review the related literature and synthesize 15 arguments for using domestic trade flows in gravity estimations. The analysis reveals the need for further theory contributions and new data developments, and points to opportunities for more policy applications.

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Section: Argument 4 the Use Of Domestic Trade Flows Allows For Estima...mentioning

confidence: 99%

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confidence: 99%

On the role of domestic trade flows for estimating the gravity model of trade

Yotov

2022

Contemporary Economic Policy

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“…When examining the individual costs associated with market entry, geographic information is usually required (Lovely et al, 2019; Redding & Venables, 2004). Another measure of market liberalization is the Nominal Rate of Assistance at the Farm Gate (NRAf) (Anderson et al, 2008).…”

Section: Market Liberalization and Estimation Strategymentioning

confidence: 99%

Household grain storage decision in a transitory economy: Market liberalization and off‐farm employment

Wei,

Gai,

Shi

2023

Review Development Economics

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The grain storage held by rural households, given its significant quantity and crucial role in household operations, plays a vital role in ensuring food security. This paper constructs a theoretical framework that encompasses household decisions regarding off‐farm employment, savings, and consumption, as well as the production, selling, and storage of grain. The theoretical model, driven by motivations of risk aversion and temporal price arbitrage, highlights the importance of market liberalization and off‐farm employment in shaping rural household grain storage decisions. Utilizing household‐level panel data from 2003 to 2020, we empirically validate that both market liberalization and off‐farm employment contribute to the reduction of household grain storage. However, these effects exhibit heterogeneity depending on the scale of household grain production and the specific crops cultivated. Significant impacts of market liberalization are observed among large‐scale producers who have greater exposure to the market. Furthermore, the storage of rice and corn decreases with an increase in off‐farm employment.

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“…The inequality of economic development is of critical significance to economic development and is a concern for scholars worldwide. Since the 1980s, the foreign-related scholars' research literature on economic inequality has mushroomed [8][9][10][11][12][13], and then relevant domestic studies began to emerge rapidly. As indicated by the existing research results, numerous factors cause China's regional development gap to widen constantly, and they can roughly fall into two types.…”

Section: Literature Reviewmentioning

confidence: 99%

“…where Model (9) denotes the regression of the first stage, and its explained variable is capital deepening. Soviet_aid it represents the Soviet Union aid project.…”

Section: Robustness Test 421 Endogenous Testmentioning

confidence: 99%

The Influence of Capital Deepening on Regional Economic Development Gap: The Intermediary Effect of the Labor Income Share

Wang

Qiao

2022

Sustainability

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At the same time as economic development, the imbalance problem in regional economic development is prominent, which hinders sustainable economic development, especially in China. Explaining the causes of unbalanced regional economic development is an important scientific problem in current economic research. Here, this study takes China as the empirical research area and uses China’s inter-provincial panel data to deeply analyze the impact of capital deepening on the regional economic development gap. As indicated by this study, after a series of potential factors (e.g., industrial proportion, foreign direct investment, and per capita GDP) of the regional development gap are controlled, the capital deepening measured using perpetual inventory can have a strong explanatory power for the regional development gap, i.e., the greater the value of capital deepening, the more significant the regional development gap will be. According to the above conclusion, the effect arising from capital deepening on the regional development gap is still significant, even after the Soviet Aid Project is employed as the current instrumental variable of capital deepening, as well as after the data from the world sample are estimated The study further finds that capital deepening does not directly affect the regional development gap but indirectly affects the regional development gap by affecting the labor income share. Therefore, a higher labor share can narrow the regional development gap.

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Economic geography and inequality in China: Did improved market access widen spatial wage differences?

Cited by 9 publications

References 24 publications

On the role of domestic trade flows for estimating the gravity model of trade

On the role of domestic trade flows for estimating the gravity model of trade

Household grain storage decision in a transitory economy: Market liberalization and off‐farm employment

The Influence of Capital Deepening on Regional Economic Development Gap: The Intermediary Effect of the Labor Income Share

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