Regional inequality in China during its rise as a giant exporter: A value chain analysis

Abstract

China's exports success has implications for regional income inequality, because most of its export products are manufactured in the coastal zone. We propose a value chain‐based accounting framework to quantify the contributions of exports to regional income inequality. We employ newly developed interregional input–output tables for China, which distinguish between processing export activities and ordinary export activities. We analyze the period 2002–2012, the decade during which China became the “Factory of the World.” We find that an RMB of processing exports contributed much more to regional inequality than an RMB of ordinary exports or domestic final demand. Still, changes in regional inequality (increasing in 2002–2007 and decreasing between 2007 and 2012) are much more due to rising ordinary exports in the first subperiod and the growth of domestic final demand coupled with changes in the configuration of value chains in the second.

Influence Economic Growth, Inflation and Decentralization Fiscal to Inequality Regional Income

“…Inequality income between area can strengthen inequality national in a manner whole. The need policy fair and redistributive fiscal to reduce inequality income area (Duan et al, 2023).…”

Linking Brazilian Regions to Value Chains: Is There a Potential for Regional Development?

“…However, no previous research has analyzed how, in this inward-oriented form of integration into international markets, the different subnational regions are participating in value creation, nor how domestic value chains are connected to global value chains. Moreover, this raises doubts as to what extent peripheral areas benefit from the interaction of national and international chains (Duan et al 2023). Building on this case study, other studies considered the analytical scope of well-known country-level value chains' participation indicators based on trade in value added (TiVA) measures, answering the calls for the incorporation of a multiscalar approach to building a broader picture of spatial value chains (Mudambi and Puck 2016;Timmer et al 2019;Haddad and Araújo 2020).…”