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N° 2007-22 |
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| December 2007 |
| Economic Geography, Spatial Dependence and Income Inequality in China |
Laura Hering
Sandra Poncet |
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| This paper contributes to the analysis of growing income disparities within China. Based
on a structural model of economic geography using data on per capita income, we evaluate
the extent to which market proximity and spatial dependence can explain growing income
inequality between Chinese cities. We rely on a data set of 195 Chinese cities between 1995
and 2002. Our econometric specification incorporates an explicit consideration of spatial
dependence effects in the form of spatially lagged per capita income. We provide evidence
that the geography of access to markets is statistically significant in explaining variation in
per capita income in China, especially so in provinces with low migration inflows which is
coherent with NEG theory. |
Non-technical summary  |
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Résumé
non-technique
en français |
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| Full text |
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| Income inequality; economic geography; spatial dependence; China |
Keywords |
| E1; O1; O5; R1 |
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