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Demand Structure and Interprovincial Inequality: China's Experience

Author

Listed:
  • Cécile BATISSE

    (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

  • Rong CAI
  • Mary-Françoise RENARD

    (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

Abstract

The main issue that we address here is what role the aggregate demand structure has played in determining China’s income inequality. We apply the standard decomposition technique. And we find that the gross fixed capital formation is the key force for the uprising interprovincial inequality, while the disparity of household consumption expenditure is increasingly important. Thus certain implications for future reform can be drawn from the analysis

Suggested Citation

  • Cécile BATISSE & Rong CAI & Mary-Françoise RENARD, 2004. "Demand Structure and Interprovincial Inequality: China's Experience," Working Papers 200428, CERDI.
    • Handle: RePEc:cdi:wpaper:657
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