Template-type: ReDIF-Paper 1.0
Author-Name: Takahiro Akita
Author-Name-First: Takahiro
Author-Name-Last: Akita
Author-Email: akita@iuj.ac.jp
Author-Workplace-Name: International University of University
Author-Workplace-Homepage: http://www.iuj.ac.jp/
Title: Regional Income Inequality in China: A Two-Stage Nested Inequality Decomposition Analysis
Abstract: This study estimates regional income inequality in China over the 1995-1998 period using a Theil index based upon district-level GDP and population data, and conducts a two-stage nested inequality decomposition analysis to explore the factors of regional income inequality. It also performs a regression analysis to explore the possible determinants of within-province income inequality. The decomposition analysis shows that the within-province inequality component accounted for 62 % of overall regional income inequality in 1998, while the between-region component contributed 27 %. According to the regression analysis, cumulative per capita FDI and a dummy variable designating inland border provinces are found to be significant in explaining within-province inequality. It is also found that economic dualism, as denoted by a low ratio of agricultural labor productivity to labor productivity in non-agricultural sectors, is another significant factor contributing to within-province inequality.
Classification-JEL: 
Length: 31 pages
Creation-Date: 2001-10
Number: EMS_2001_05
File-URL: https://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2001_05.pdf
File-Format: Application/pdf
File-Function: First version, 2001
File-Size: 174KB
Keywords: China, regional income inequalities, two-stage inequality decomposition, foreign direct investment, economic dualism
Handle: RePEc:iuj:wpaper:EMS_2001_05