The Korean Economic Review
Regional Growth and Income Inequality in China after 1978: A Spatial Econometric Approach
Yongbok Jeon · Tae Hwan YooYear 2009Vol. 25No. 1
Based on Kaldorian approach to economic growth and development, this study aims at providing an alternative perspective and explanation of the pattern of regional growth and income inequality in China. Using spatial econometric techniques, it empirically demonstrates that the Chinese regional economic growth has been demand-led and that regional dependence among the Chinese provinces is weak. In order to rebound the current trend of increasing regional income inequality, the present study suggests the rehabilitation of active roles played by local governments in developing regional economies and progressive income distribution policy to support effective demand.