Study on Regional Income Inequality and Urbanization Mechanism in China

IR

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China has been very successful at growing its economy since the start of economic reform in 1978. However, this rapid growth has also brought social issues in China. Currently, income inequality among regions is becoming one of the most notable issues. Within this socio-economic change, the release of resident registration system (“Hu-kou system”) has resulted in a great number of population migrations, and has caused the acceleration of urbanization in China. This urbanization must impact on environment, such as water use, energy consumption, land use change and pollution, etc. This news letter measures the inequality among regions (Eastern region, Middle region, Western region) by using Gini coefficient and Theil index. Also, it estimates factors of inequality between Eastern region and Western region. Furthermore, mechanism of population migration is examined by using both nationwide time-series data and 2000 Census data.

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