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International Trade, Location and Wage Inequality in China

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  • Songhua Lin

Abstract

Models of economic geography predict that transportation costs directly affect demand for goods and the supply of intermediate inputs. One of the reasons that international trade is concentrated in the coastal provinces of China is that they have lower transportation costs in transporting goods to other countries than do provinces in the interior. This paper examines the relationship between the provincial wage rate and each province's access to international markets, and to suppliers of intermediate inputs.

Suggested Citation

  • Songhua Lin, 2003. "International Trade, Location and Wage Inequality in China," WIDER Working Paper Series DP2003-61, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2003-61
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    File URL: https://www.wider.unu.edu/sites/default/files/dp2003-061.pdf
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    References listed on IDEAS

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    Cited by:

    1. Bosker, Maarten & Brakman, Steven & Garretsen, Harry & Schramm, Marc, 2012. "Relaxing Hukou: Increased labor mobility and China’s economic geography," Journal of Urban Economics, Elsevier, vol. 72(2), pages 252-266.
    2. Pedro Amaral & Mauro Lemos & Rodrigo Simões & Flávia Chein, 2010. "Regional Imbalances and Market Potential in Brazil," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(4), pages 463-482.
    3. repec:diw:diwwpp:dp1547 is not listed on IDEAS
    4. Christian Dreger & Reinhold Kosfeld & Yanqun Zhang, 2019. "Determining Minimum Wages In China: Do Economic Factors Dominate?," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 31(1-2), pages 44-59, March.
    5. Song, Tao & Cieslik, Andrzej, 2020. "The effects of free trade agreements on regional wages in China," Economic Systems, Elsevier, vol. 44(3).

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