Urbanization and Income Inequality in Post-Reform China: A Causal Analysis Based on Time Series Data.

ABSTRACT: This paper investigates the potential causal relationship(s) between China's urbanization and income inequality since the start of the economic reform. Based on the economic theory of urbanization and income distribution, we analyze the annual time series of China's urbanization rate and Gini index from 1978 to 2014. The results show that urbanization has an immediate alleviating effect on income inequality, as indicated by the negative relationship between the two time series at the same year (lag = 0). However, urbanization also seems to have a lagged aggravating effect on income inequality, as indicated by positive relationship between urbanization and the Gini index series at lag 1. Although the link between urbanization and income inequality is not surprising, the lagged aggravating e

SUBMITTER: Chen G 

PROVIDER: S-EPMC4951071 | biostudies-literature | 2016

REPOSITORIES: biostudies-literature