Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/52870
Authors: 
Wan, Guanghua
Lu, Ming
Chen, Zhao
Year of Publication: 
2004
Series/Report no.: 
WIDER Discussion Papers // World Institute for Development Economics (UNU-WIDER) 2004/10
Abstract: 
China’s recent accession to the WTO is expected to accelerate its integration into the world economy, which aggravates concerns over the impact of globalization on the already rising inter-region income inequality in China. This paper discusses China’s globalization process and estimates an income generating function, incorporating trade and FDI variables. It then applies the newly developed Shapley value decomposition technique to quantify the contributions of globalization, along with other variables, to regional inequality. It is found that (a) globalization constitutes a positive and substantial share to regional inequality and the share rises over time; (b) capital is one of the largest and increasingly important contributor to regional inequality; (c) economic reform characterized by privatization exerts a significant impact on regional inequality; and (d) the relative contributions of education, location, urbanization and dependency ratio to regional inequality have been declining.
Subjects: 
globalization
inequality
decomposition
Shapley value
China
JEL: 
C31
F02
R12
ISBN: 
9291906581
Document Type: 
Working Paper

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