Industrialization and spatial income inequality in rural China, 1986‐921

Shujie Yao

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China's Socioeconomic Reforms and Governance Income, Poverty, and Inequality Regional Economic and Spatial Analysis

Abstract

Abstract Rural industrialization has been a dominant factor responsible for China's rapid economic growth over the last 18 years, but it has been accompanied by increased inter‐regional income inequality. Using the most recent rural income data and two alternative Gini coefficient decomposition methods, this study finds that income inequality, especially inter‐regional income inequality increased significantly in the period 1986‐92. More than half of national income inequality was due to its inter‐provincial component, and three quarters of inter‐provincial inequality was due to its inter‐zonal component. Uneven development of township and village enterprises has been a major cause of increased regional income inequality.

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