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China's provincial disparities and the determinants of provincial inequality

机译:中国的省际差距和省际不平等的决定因素

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The paper explains the growth-inequality nexus for China's provinces. The theoretical model of provincial development consists of two regions and studies the interactions of a mutually dependent development process. Owing to positive externalities, incoming trade and FDI induce imitation and hence productivity growth. The regional government can influence the economy by changing international transaction costs and providing a public infrastructure. Mobile domestic capital reinforces disparity effects. The implications of the theoretical model are tested. As the central intention of the paper is to explain provincial disparity, we directly relate income disparity (indicated by the contribution to the per capita income Theil index) to the disparity of selected income determining factors (indicated by the contribution to every other Theil index of the determinants). We examine the determinants of inequality for 28 Chinese provinces over the period 1991-2004 and apply a fixed effects panel estimation. The results confirm the theoretical framework and suggest a direct link between the factors that determine regional income and regional disparity. More specifically, it is apparent that disparities in trade, foreign and domestic capital and infrastructure have an impact on the provincial income Theil disparity, whereas provincial disparities in government expenditure and human capital do not seem to drive the income Theil disparity. Therefore, three decades of government reforms led to an extraordinary success of some provinces and increasing inequality. However, government expenditures and public human capital investments seemed to have a stabilizing effect on provincial disparity.
机译:本文解释了中国各省之间的增长-不平等关系。省级发展的理论模型由两个地区组成,研究相互依赖的发展过程的相互作用。由于积极的外部性,进来的贸易和外国直接投资引起了模仿,从而提高了生产率。区域政府可以通过改变国际交易成本并提供公共基础设施来影响经济。国内流动资金加剧了差距效应。理论模型的含义进行了测试。由于本文的主要目的是解释各省之间的差异,因此我们将收入差异(由对人均收入泰勒指数的贡献表示)与选定的收入决定因素的差异(由对其他泰勒指数的贡献表示)联系起来。行列式)。我们研究了1991-2004年间中国28个省的不平等决定因素,并应用了固定影响面板估计。结果证实了理论框架,并暗示了决定地区收入和地区差异的因素之间的直接联系。更具体地说,很明显,贸易,外国和国内资本以及基础设施的差异对省级收入Theil的差异有影响,而省级政府支出和人力资本上的差异似乎并没有推动收入Theil的差异。因此,三十年的政府改革导致一些省份取得了非凡的成功,并加剧了不平等现象。但是,政府支出和公共人力资本投资似乎对省级差距产生了稳定作用。

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