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The Evolution of Regional Disparities in China, 1993-2003: A Multi-Level Decomposition analysisCarsten Herrmann-PillathFrankfurt School of Finance and Management Sheng ZhaohanNanjing University - School of Management Science and Engineering Jiangu DuNanjing University - School of Management Science and Engineering Tiaojun XiaoNanjing University Kai LiState Information Center, State Council of PRC Jiancheng PanNational Bureau of Statistics of PRC January 12, 2006 Abstract: The paper applies the standard decomposition analysis of the General Entropy Measure to a new set of GDP and sectoral income data for Chinese prefectures with three points of observation over a decade (1993, 1998 and 2003). Prefectures are arranged into regional subgroupings on different levels of aggregation, i.e. the belt, the macroregion and the province. We investigate the relative roles of inter- and intra-regional factors of total inequality. Main results include: There is a strong impact on intra-provincial factors, so that larger aggregation schemes may mislead regional policies; the level of urban inequality continues to be much lower and more uniform than rural inequality, however, with increasing urban inequality in the coastal areas; there is a clear trend towards greater inter- and intra-regional inequality which is driven by rural-urban disparities.
Number of Pages in PDF File: 42 Keywords: Regional economic development, China, decomposition analysis, inter- and intraregional inequality JEL Classification: O18, O53, P24, R12 working papers seriesDate posted: December 4, 2006Suggested CitationContact Information
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