Regional income inequality in China revisited: A perspective from club convergence |
| |
| Institution: | 1. College of Economics and Management & China Center for Food Security Studies, Nanjing Agricultural University, Weigang No. 1, 210095 Nanjing, Jiangsu, China;2. College of Economics and Management, Nanjing Agricultural University, Weigang No. 1, 210095 Nanjing, Jiangsu, China;3. School of Management, Zhejiang University, Hangzhou 310058, China;4. Courant Research Center “Poverty, Equity and Growth”, University of Göttingen, Platz der Goettinger Sieben 5, Göttingen 37073, Germany;1. Department of Economics and Finance, Salisbury University, United States;2. School of Economics, Georgia Institute of Technology, United States;1. Department of Economics, University of Birmingham, United Kingdom;2. Instituto de Economía Internacional, University Jaume I, Spain;3. UPAEP, Mexico;1. VISES, Victoria University, Australia;2. Independent researcher, Bethesda, MD, USA;1. Department of Banking and Financial Management, University of Piraeus, Piraeus, Greece;2. J. Whitney Bunting College of Business, Georgia College & State University, Milledgeville, GA 31061, United States |
| |
| Abstract: | Growing income inequality in China has elicited considerable concern, and consensus has not been reached regarding whether regional income converges into one common steady state. The controversy may be attributed to the various definitions and methodologies for testing convergence. This study analyzes regional income inequality and convergence in China from the perspective of club convergence proposed by Phillips and Sul (2007). Instead of one convergence at the national level, we determine that provincial incomes are converging into two clubs: seven east-coastal provinces (Shanghai, Tianjin, Jiangsu, Zhejiang, Guangdong, Shandong, and Fujian) and Inner Mongolia are converging into a high income club, and the remaining provinces are converging into a low income club. In addition, we obtain strong evidence that income inequality within a club decreases, while that between clubs deteriorates over time. Between-club inequality is associated with investment in physical and human capital, as well as population growth rates. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
