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Interpreting Overall Inequality In China: The Roles Of Physical Capital, Human Capital And Social Capital

Author

Listed:
  • Yuheng LI

    (Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, 11A Datun Road, Chaoyang District, Beijing, 100101, China)

  • Hans WESTLUND

    (Department of Urban Planning and Environment, Royal Institute of Technology (KTH), Stockholm, Sweden)

Abstract

This paper investigates the relationship between overall inequality in China and the contributions of physical capital, human capital and social capital. The investment in physical capital tends to enlarge overall inequality while human capital helps to reduce the inequality. Human capital appears to be more influential than physical capital in overall inequality reduction in the research period. Social capital (people’s social networks) however, does not seem to exert any impact on overall inequality in the post-reform era. Possible policy implications of these results are that measures should be taken to pursue more even distributed investment of physical capital and to increase people’s education in order to reduce overall inequality in China.

Suggested Citation

  • Yuheng LI & Hans WESTLUND, 2013. "Interpreting Overall Inequality In China: The Roles Of Physical Capital, Human Capital And Social Capital," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 145-150, December.
    • Handle: RePEc:hrs:journl:v:v:y:2013:i:2:p:145-150
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    References listed on IDEAS

    as
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    4. Hans Westlund & Frane Adam, 2009. "Social Capital and Economic Performance: A Meta-analysis of 65 Studies," European Planning Studies, Taylor & Francis Journals, vol. 18(6), pages 893-919, November.
    5. Khan, Azizur Rahman & Riskin, Carl, 2001. "Inequality and Poverty in China in the Age of Globalization," OUP Catalogue, Oxford University Press, number 9780195136494.
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    More about this item

    Keywords

    Overall inequality; Capital investment; Economic growth; China;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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