Spatial externalities and regional income inequality: Evidence from China’s prefecture-level data |
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Authors: | Xiuyan Liu Xingmin Yin |
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Institution: | (1) The Ratio Institute, P.O. Box 5095, SE-102 42, Stockholm, Sweden |
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Abstract: | Based on panel data of 282 prefectures in China from 1999 to 2004; we explore the relationship between market potential, employment
density and per capita GDP by using a dynamic panel data approach. It is found that the externalities arising from market
potential and employment density have a positive and significant effect on local income. Moreover, both absolute and standardized
elasticity of market potential externalities are pronounced, which suggests that market potential has a greater impact on
regional disparity. |
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Keywords: | |
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