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The Chinese Inland-Coastal Inequality: The Role of Human Capital and the 2007–2008 Crisis Watershed

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  • Emanuele Felice

    (University of Chieti-Pescara)

  • Iacopo Odoardi

    (University of Chieti-Pescara)

  • Dario D’Ingiullo

    (University of Parma)

Abstract

We investigate the role of human capital (HC) in the Chinese inland-coastal inequality and, related to this, how the consequences of the 2007–2008 crisis may induce China to re-focus its development path on HC. We compare panel data analyses for two periods (1998–2008 and 2009–2017) for two diverging groups of provinces (the richer/coastal and the relatively poor/inland areas). In the first period, the economic strengths that influenced the Chinese take-off and the dualism are confirmed. However, the results show that an evolution in local economic endowments is taking place: first, HC has a more evident economic effect after the crisis only in the inland provinces; second, the development path of the inland area is changing, with an evolution towards more productive sectors which can favor higher returns to HC.

Suggested Citation

  • Emanuele Felice & Iacopo Odoardi & Dario D’Ingiullo, 2023. "The Chinese Inland-Coastal Inequality: The Role of Human Capital and the 2007–2008 Crisis Watershed," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(2), pages 761-788, July.
    • Handle: RePEc:spr:italej:v:9:y:2023:i:2:d:10.1007_s40797-021-00169-w
    DOI: 10.1007/s40797-021-00169-w
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    More about this item

    Keywords

    Human capital; China; Inland-coastal inequality; North–South problem;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics

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