Journal Article

Interprovincial inequality in China


Abstract: In this Economic Letter, we document the increasing income inequality among Chinese provinces over the past two decades. Our discussion highlights three important facts. First, economic growth has lifted living standards throughout China, with all provinces gaining in absolute terms. Second, economic growth has benefited some provinces more than others, increasing regional income inequality. Third, no single explanation can account for the steady increase in inequality among provinces over time. These observations suggest that China, like many industrialized nations, will continue to struggle to meet its growth goals while distributing the benefits of an expanding economy more equally.

Keywords: Income distribution; China;

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Bibliographic Information

Provider: Federal Reserve Bank of San Francisco

Part of Series: FRBSF Economic Letter

Publication Date: 2009

Order Number: 13