The income distribution of China : regional disparities.

• Main Author: Chua, Hwee Yong.
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business
• Online Access: http://hdl.handle.net/10356/51229
• Institution: Nanyang Technological University

The distribution of wealth and income has always been a controversial economic issue in almost every developing country. The question asked is: '‘Why should some live in extreme deprivation while some can afford to live like a ‘king’?”. As we know, neither too much nor too little income inequality should be aimed at, since there is apparently a level of inequality which is a natural feature of human life. Too much inequality will lead to a revolution, while too little will lead to a breakdown of economic life. My report attempts to study the income distribution pattern in China and find out whether the income gap across regions has been widening or narrowing since the onset of economic reforms. The first chapter provides a summary of the background, purpose and scope of this report. The main motivation for and the procedures used in doing the project are also included in this chapter. The second chapter gives an extensive literature review on the income distribution of China, highlighting the regional disparities. The magnitude of inter- provincial income differentials and the importance of various factors which might determine these differentials are assessed in the following chapter. Chapter 4 examines the provincial income trends over the reform period (1978 to 1994) and Chapter 5 examines the factors which help to explain provincial differences in economic growth rates from 1990 to 1994. Some suggestions for improving the distribution of income in China can be found in Chapter 6 and the main findings and conclusions are provided in the last chapter.