Intra-Provincial Inequalities and Economic Growth in China
Posted: 30 Jul 2011
Date Written: 2010
This paper approaches the problem of inequalities in China. It is specifically focused on analyzing the effects of intra-provincial disparities on the development of the 28 mainland provinces in China. Intra-provincial inequalities, as measured by the Theil index, seem positively related to growth, albeit the results are only convincing for the coastal provinces. A case by case analysis, however, suggests highly diversified patterns, including linear or an inverted U-shape for the fastest growing coastal provinces and virtually no relationship for the majority of regions. The results corroborate some questions raised earlier about actual policy-making standards in China.
Keywords: Inequality, Economic growth, Theil index, China
JEL Classification: D63, P25, P30
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