The Evolution of Regional Disparities in China, 1993-2003: A Multi-Level Decomposition analysis

42 Pages Posted: 4 Dec 2006  

Carsten Herrmann-Pillath

Max Weber Center for Advanced Cultural and Social Studies

Sheng Zhaohan

Nanjing University - School of Management Science and Engineering

Jiangu Du

Nanjing University - School of Management Science and Engineering

Tiaojun Xiao

Nanjing University

Kai Li

State Information Center, State Council of PRC

Jiancheng Pan

National Bureau of Statistics of PRC

Date Written: 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.

Keywords: Regional economic development, China, decomposition analysis, inter- and intraregional inequality

JEL Classification: O18, O53, P24, R12

Suggested Citation

Herrmann-Pillath, Carsten and Zhaohan, Sheng and Du, Jiangu and Xiao, Tiaojun and Li, Kai and Pan, Jiancheng, The Evolution of Regional Disparities in China, 1993-2003: A Multi-Level Decomposition analysis (January 12, 2006). Available at SSRN: https://ssrn.com/abstract=949072 or http://dx.doi.org/10.2139/ssrn.949072

Carsten Herrmann-Pillath (Contact Author)

Max Weber Center for Advanced Cultural and Social Studies ( email )

Nordhäuserstr. 74
Erfurt, 90228
Germany

Sheng Zhaohan

Nanjing University - School of Management Science and Engineering ( email )

Nanjing, Jiangsu 210093
China

Jiangu Du

Nanjing University - School of Management Science and Engineering ( email )

Nanjing, Jiangsu 210093
China

Tiaojun Xiao

Nanjing University

Nanjing, Jiangsu 210093
China

Kai Li

State Information Center, State Council of PRC ( email )

China

Jiancheng Pan

National Bureau of Statistics of PRC ( email )

No. 75, Yuetan Nanjie
Sanlihe, Xicheng District
Beijing 100826
China

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