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International Trade, Factor Endowments, and Income Inequality: Evidence from Chinese Regional Data

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  • Yanyan Xiong

Abstract

This study estimates the effects of international trade on income distribution within Chinese provinces. Dynamic panel data from a household survey and provincial statistics from 1988 to 2009 were used. Bias-corrected least square dummy variable estimations were employed. The results show that the distribution effects of exports and imports offset each other. Exports tend to reduce income inequality, but its effect varies depending on the distribution of factor endowments across regions. Imports tend to increase income inequality, mainly due to the positive relationship between imports and inequality in skill-intensive regions.

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  • Yanyan Xiong, 2020. "International Trade, Factor Endowments, and Income Inequality: Evidence from Chinese Regional Data," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(14), pages 3405-3424, November.
    • Handle: RePEc:mes:emfitr:v:56:y:2020:i:14:p:3405-3424
    DOI: 10.1080/1540496X.2019.1694893
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    Cited by:

    1. Ponce, Pablo & Yunga, Fernando & Larrea-Silva, Jhohana & Aguirre, Nikolay, 2023. "Spatial determinants of income inequality at the global level: The role of natural resources," Resources Policy, Elsevier, vol. 84(C).
    2. Henri Njangang & Alim Beleck & Sosson Tadadjeu & Brice Kamguia, 2021. "Do ICTs drive wealth inequality? Evidence from a dynamic panel analysis," Working Papers 21/057, European Xtramile Centre of African Studies (EXCAS).
    3. Njangang, Henri & Beleck, Alim & Tadadjeu, Sosson & Kamguia, Brice, 2022. "Do ICTs drive wealth inequality? Evidence from a dynamic panel analysis," Telecommunications Policy, Elsevier, vol. 46(2).
    4. Henri Njangang & Alim Beleck & Sosson Tadadjeu & Brice Kamguia, 2021. "Do ICTs drive wealth inequality? Evidence from a dynamic panel analysis," Working Papers of the African Governance and Development Institute. 21/057, African Governance and Development Institute..
    5. Mohd Nayyer Rahman & Nida Rahman & Abdul Turay & Munir Hassan, 2022. "Do Trade and Poverty Cause Each Other? Evidence from BRICS," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 14(1), pages 9-31, January.
    6. Koh, Sharon G. M. & Lee, Grace H. Y. & Siah, Audrey K. L., 2022. "The Resurgence of Income Inequality in Asia-Pacific: The Role of Trade Openness, Educational Attainment and Institutional Quality," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 56(3), pages 11-27.

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