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Spatial Externalities and Regional Income Inequality: Evidence from China’s Prefecture- Level Data

Author

Listed:
  • Xiuyan Liu

    (School of Economics & Management, Southeast University, Nanjing 210096, China)

  • Xingmin Yin

    (School of Economics & Management, Southeast University, Nanjing 210096, China)

Abstract

Based on panel data of 282 prefectures in China from 1999 to 2004; we explore the relationship between market potential, employment density and per capita GDP by using a dynamic panel data approach. It is found that the externalities arising from market potential and employment density have a positive and significant effect on local income. Moreover, both absolute and standardized elasticity of market potential externalities are pronounced, which suggests that market potential has a greater impact on regional disparity.

Suggested Citation

  • Xiuyan Liu & Xingmin Yin, 2010. "Spatial Externalities and Regional Income Inequality: Evidence from China’s Prefecture- Level Data," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 5(2), pages 325-338, June.
    • Handle: RePEc:fec:journl:v:5:y:2010:i:2:p:325-338
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    File URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-010-0016-1
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    Citations

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    Cited by:

    1. Guangdong Li & Chuanglin Fang, 2014. "Analyzing the multi-mechanism of regional inequality in China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 155-182, January.

    More about this item

    Keywords

    spatial externalities; income inequality; market potential; dynamic panel;
    All these keywords.

    JEL classification:

    • L69 - Industrial Organization - - Industry Studies: Manufacturing - - - Other
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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