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The coastal-inland income gap in China from 1991 to 1999: the role of geography and policy

Wang, Z. and O'Brien, R. (2003) The coastal-inland income gap in China from 1991 to 1999: the role of geography and policy , Southampton University of Southampton (Discussion Papers in Economics and Econometrics, 301).

Record type: Monograph (Discussion Paper)


We investigate the enlarging coastal-inland income gap in China during the 1990s, using GMM estimation of a Solow growth model. Disaggregating capital investment by source: public, foreign and private: helps to disentangle the effect of policy from those of geography. The impact of public investment on growth is insignificant in our panel data for 29 provinces; that of foreign investment is significant; private investment is most influential. We also use the distance by railway of each province’s capital city to its nearest port city as a proxy for transportation costs, and find significant differences across regions. Distance has negative effects on economic development but its marginal impact effects become less as distance increases. The coastal-inland gap will grow in the foreseeable future, if inland areas are not able to benefit from an increase in private investment and infrastructure improvements (to reduce transport costs).

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Published date: 2003


Local EPrints ID: 33201
ISSN: 0966-4246
PURE UUID: 6786a68c-1918-464a-8dfa-435ef8039ba9

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Date deposited: 18 May 2006
Last modified: 17 Jul 2017 15:53

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Author: Z. Wang
Author: R. O'Brien

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