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An Empirical Test on Effect of Intra-Product Trade on Regional Income Distribution: The Case of Liaoning, China

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  • Cui Yanjuan
  • Yu Jin

Abstract

This paper examines the relationship between intra-product trade and regional income distribution by empirical tests of co-integration and Granger causality with time series data from 1994 to 2013. The conclusion shows that intra-product trade and regional income distribution have a long-term equilibrium relationship. The exports of intra-product trade can significantly reduce the income gap between urban and rural residents, while the imports have a negative influence. At the meantime, the intra-product exports and imports are the one-way causal of income distribution. In addition, the capital contribution can enlarge the urban and rural income gap significantly. Education also has a negative influence, but it is non-significant.

Suggested Citation

  • Cui Yanjuan & Yu Jin, 2015. "An Empirical Test on Effect of Intra-Product Trade on Regional Income Distribution: The Case of Liaoning, China," Quarterly Journal of Econometrics Research, Conscientia Beam, vol. 1(1), pages 13-22.
    • Handle: RePEc:pkp:qjoecr:v:1:y:2015:i:1:p:13-22:id:2554
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