Abstract:Market integration is an important tool for China’s regionally coordinated economic development. At the same time, China is implementing an innovation-driven development strategy. Therefore, the way the market integration affects regional innovation is of great significance to analyze this problem. The panel data of 27 cities in the Yangtze River Delta region in China with the highest degree of economic integration from 2009 to 2018 are used to investigate the impact of market integration (MI) on regional inno… Show more
“…The study controls for GDP per capita (RGDP) as it measures the level of regional economic development, which is routinely employed as a determinant of income inequality [45][46][47]. The population (POP) is also included as a control variable as it measures the size of a region, which may also affect income inequality [48]. Additionally, according to previous studies, the industrialization process may also affect income inequality [45,49].…”
The COVID-19 pandemic has had a profound impact on almost all aspects of society and the world’s economy. This study aimed to examine the impact of COVID-19 on regional income inequality in China. Based on provincial data from 20 provinces (covering 218 prefecture-level cities) for the period from 2013 to 2022, the study revealed the significant impact of COVID-19 on widening regional income inequality, using a continuous difference-in-differences (DID) model. The results were robust when applying a parallel trend test, lagging control variables, and alternative measures of regional income inequality to test the results. Additional analysis suggested that the adverse impact of COVID-19 on regional income inequality was increased by regions’ foreign trade dependence and their share in the service industry but may have been weakened by the development of the digital economy. The findings highlight the adverse effects of COVID-19 on regional income inequality.
“…The study controls for GDP per capita (RGDP) as it measures the level of regional economic development, which is routinely employed as a determinant of income inequality [45][46][47]. The population (POP) is also included as a control variable as it measures the size of a region, which may also affect income inequality [48]. Additionally, according to previous studies, the industrialization process may also affect income inequality [45,49].…”
The COVID-19 pandemic has had a profound impact on almost all aspects of society and the world’s economy. This study aimed to examine the impact of COVID-19 on regional income inequality in China. Based on provincial data from 20 provinces (covering 218 prefecture-level cities) for the period from 2013 to 2022, the study revealed the significant impact of COVID-19 on widening regional income inequality, using a continuous difference-in-differences (DID) model. The results were robust when applying a parallel trend test, lagging control variables, and alternative measures of regional income inequality to test the results. Additional analysis suggested that the adverse impact of COVID-19 on regional income inequality was increased by regions’ foreign trade dependence and their share in the service industry but may have been weakened by the development of the digital economy. The findings highlight the adverse effects of COVID-19 on regional income inequality.
“…Factor markets' integration level lags far behind commodity markets [6]. In addition to economic factors, various institutional barriers contribute to the distorted development of YRD integration [7]. The uneven development within the Yangtze River Delta region, the severe phenomenon of "vassal economy," the stagnation of market integration and industrial division of labor, the difficulty of synergistic development between mega-cities and super-small cities, the inadequate coordination mechanism of regional interests and the current governmental assessment system, and the failure of Shanghai's core leading role to give full play to the Yangtze River Delta integration are all severe constraints to the development level [8][9][10].…”
This article uses the Novy model improved by value-added trade data to measure the cost of inter-provincial trade in the Yangtze River Delta and, on this basis, uses the differential decomposition method to explore the promoting effect of inter-provincial trade costs on the development of inter-provincial trade in the Yangtze River Delta. The results show that the inter-provincial trade costs of the provinces/municipalities in the Yangtze River Delta have increased and decreased, but the changes are small, and there are significant differences in sectoral and bilateral trade costs; the results of the differential decomposition show that the contribution of inter-provincial trade costs to inter-provincial trade development in the Yangtze River Delta is much lower than that of economic growth. Therefore, the Yangtze River Delta should deepen the division of labor and cooperation, give full play to the radiation and leading role of Shanghai as an economic center, and accelerate the digital innovation transformation of the service industry to reduce inter-provincial trade costs and achieve a higher level of integrated development of the Yangtze River Delta.
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