Arbeitspapier

Globalization and regional income inequality: Empirical evidence from within China

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-regional 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 of regional inequality and the share rises over time; (b) domestic capital, however, emerges as the largest contributor to regional inequality; (c) economic reform characterized by privatization exerts an increasingly significant impact on regional inequality; and (d) the relative contributions of education, location, urbanization and dependency ratio to regional inequality have been declining. – globalization ; inequality decomposition ; Shapley value ; China

ISBN
9291909238
Language
Englisch

Bibliographic citation
Series: WIDER Research Paper ; No. 2006/139

Classification
Wirtschaft
Multiple or Simultaneous Equation Models: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
Size and Spatial Distributions of Regional Economic Activity
Subject
Globalisierung
Regionale Einkommensverteilung
China
Shapley-Wert

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)
2006

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Wan, Guanghua
  • Lu, Ming
  • Chen, Zhao
  • The United Nations University World Institute for Development Economics Research (UNU-WIDER)

Time of origin

  • 2006

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