The Trend of Regional Income Disparity in the People’s Republic of China
Since the late 1970s, as the People's Republic of China (PRC) has opened to the outside world and reformed its economic system, many of its regions have achieved high economic growth rates. However, regional disparity is a core problem that the PRC must solve to achieve coordinated regional development.
Based on recent updated statistical data that has become available since the PRC implemented its first national economic census in 2004, this paper studies the trend of regional disparity both among and within the provinces of the PRC from 1978 to 2005. The authors find that compared with the 1990s, the expansive trend of inter-provincial disparities has slowed down and started to decrease somewhat since 2000. Disparities within many provinces have even exceeded inter-provincial disparities.
The authors find that changes in regional disparities in recent years can be attributed to many factors, including policies and regional specific factors as well as some cyclical factors. They conclude that it is not yet possible to say that the PRC's regional disparities have started a decline that will continue.
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The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.
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