Income Inequality between Chinese Regions: Newfound Harmony or Continued Discord?

21 Pages Posted: 8 Jun 2011

See all articles by Johanna Karin Rickne

Johanna Karin Rickne

Stockholm University - Swedish Institute for Social Research (SOFI)

Date Written: May 9, 2011

Abstract

This paper develops an improved test of economic convergence or divergence using time series methods. The usefulness of the method is illustrated in an analysis of the growth pattern between Chinese regions in 1952-2007. Comparing all combinations of regional pairs, the analysis yields support for economic divergence in roughly half of the cases. In the other half, we instead find that regions have grown while maintaining stable income differences. As such, the results show the co-existence of divergence and conditional convergence among China's regions.

Keywords: China, output convergence, non-linear cointegration

JEL Classification: O53, R11, C32.

Suggested Citation

Rickne, Johanna Karin, Income Inequality between Chinese Regions: Newfound Harmony or Continued Discord? (May 9, 2011). IFN Working Paper No. 872, Available at SSRN: https://ssrn.com/abstract=1860091 or http://dx.doi.org/10.2139/ssrn.1860091

Johanna Karin Rickne (Contact Author)

Stockholm University - Swedish Institute for Social Research (SOFI) ( email )

Kyrkgatan 43B
SE-106 91 Stockholm
Sweden

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