Sunday, January 27, 2008

Regional Income Disparity in China

The Trend of Regional Income Disparity in the People’s Republic of China

Based on recent updated statistical data that has become available since the PRC implemented its first national economic census in 2004, this paper studies the trend of regional disparity both among and within the provinces of the PRC from 1978 to 2005. The authors find that compared with the 1990s, the expansive trend of inter-provincial disparities has slowed down and started to decrease somewhat since 2000. Disparities within many provinces have even exceeded inter-provincial disparities.

The authors find that changes in regional disparities in recent years can be attributed to many factors, including policies and regional specific factors as well as some cyclical factors. They conclude that it is not yet possible to say that the PRC's regional disparities have started a decline that will continue.

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