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Regional income inequality in China
Transcript of Regional income inequality in China
Income gap becomes larger.
1% household in China holds 41.4% of total wealth.
Coastal region, eg: Guangdong, Shanghai
Inland region, eg: Sichuan, Henan Causes of Regional Income
Inequality in china
1978, Chinese Economic Reform began
1980, Special Economics Zones (SEZs) Established
1992, Southern Tour Lectures declared by Deng Xiaoping, raised a idea about some people becomes rich before others
More competitive Labor migration
from inland to coastal region
Cheap labor force
Export-oriented policy 45% of exports contributed by foreign invest enterprises.
83.7% FDI located in coastal region Government policies Geographic factors and
labor migration Foreign Direct Investment (FDI) influences Inequality income Market integration Inter-regional protection policies
Fragmented domestic trading market Coastal region: external-oriented business
Inland region: internal-oriented business Bigger influence on inland region Policy proposed Jiang Zemin: Western Regional Development Program ("Go West")
Hu Jintao: Revive the North-east & Rise of central Region Reverse argument Registered population ≠ Residents population Regional Income Inequality in China BB004943
Pang Bo Inland:
Farmers solved food and clothing problem
High-educated people peruse self-realization GDP per capita= Total GDP/ No. of population Chinese hukou registeation system