Globalization and regional income inequality: Evidence from within China

Arbeitspapier

China’s recent accession to the WTO is expected to accelerate its integration into the world economy, which aggravates concerns over the impact of globalization on the already rising inter-region income inequality in China. This paper discusses China’s globalization process and estimates an income generating function, incorporating trade and FDI variables. It then applies the newly developed Shapley value decomposition technique to quantify the contributions of globalization, along with other variables, to regional inequality. It is found that (a) globalization constitutes a positive and substantial share to regional inequality and the share rises over time; (b) capital is one of the largest and increasingly important contributor to regional inequality; (c) economic reform characterized by privatization exerts a significant impact on regional inequality; and (d) the relative contributions of education, location, urbanization and dependency ratio to regional inequality have been declining.

Object Details

• ISBN: 9291906581
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WIDER Discussion Paper ; No. 2004/10

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models ; International Economic Order and Integration ; Size and Spatial Distributions of Regional Economic Activity
• Subject: globalization ; inequality ; decomposition ; Shapley value ; China ; Globalisierung ; Regionale Einkommensverteilung ; China

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Wan, Guanghua ; Lu, Ming ; Chen, Zhao
• Event: Veröffentlichung
• (who): The United Nations University World Institute for Development Economics Research (UNU-WIDER)
• (where): Helsinki
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/52870
• Last update: 10.03.2025, 11:46 AM CET