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Economic Inequality and Spillover Effects in China Prefecture-Level Evidence from 1999 to 2006

Economic disparity and spillover effect in China: Evidence from 1999 to 2006
by

yushu zhu

on 3 April 2010

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Transcript of Economic Inequality and Spillover Effects in China Prefecture-Level Evidence from 1999 to 2006

Economic disparity and spillover effect in China: Evidence from 1999 to 2006 Research Questions: (1) Is the economic disparity increasing or decreasing in China? (2) Are there spillover effects of economic development? (3) What is the association between the spillover effects and economic disparity? Why are the questions important? (1) A long history of debates over regional economic inequality in China (image) (2) Policy implications--"economic convergence"? “Western Development Program”
“Pan Pearl River Delta Region”
the national Eleventh Five-Year Plan (2006-2010) (3) Limits of literature Lack of research on association between spillover effects and regional inequality
Most of research in this field take a macro-level approach using provincial data at best Study area and unit of analysis Spatial unit of analysis: Prefectures under provinces Data and Methodology Data sources:
“China Regional Economic Statistics Yearbook 2000 to 2007”;
“China City Statistical Yearbook 2000 to 2007”; and
“Provincial Statistical Yearbooks”. GDP and Population Data GDP per capita Economic inequality--Theil's Index:
between-region inequality (inter-region inequality);
between-province inequality (within each region); and
between-prefecture inequality (within each province) Spatial pattern
Moran's I;
Local Indicator of Spatial Autocorrelation (LISA) Methodology Key Findings 1. National inequality are on the rise overall until 2005;
Global spatial autocorrelation of per capita GDP co-move with overall inequality
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