Intraregional Inequality in China: A Decomposition Analysis

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his paper analyzes the development of intra-provincial regional disparities in China between 1989 and 2001. Although previous studies did find evidence for significant regional disparities on the sub-provincial level, research on this topic remains sparse and mostly piecework. Neither trends nor causalities are sufficiently understood. Therefore, the purpose of this paper is to provide an consistent measurement of level, development and relative importance of intraregional disparities. The results show that intraregional disparities contribute significantly to total inequality, and that the relative importance of these disparities is even increasing in recent years. By further decomposing intra-provincial income disparities, it is found that regional components account for about half of the measured intra-provincial inequality. Thus, the spatial component of intraprovincial disparities - compared with a sectoral or rural-urban division - should not be ignored. Additionally, the need for analysis on lower levels of aggregation is highlighted. Generally, the results call for a further analysis of intraregional disparities on the sub-provincial level. Ⅰ

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