China Economic Research Center Working Paper Series
Rural Household Income in China: Spatial-Temporal Disparity and Its Interpretation
Abstract: This paper investigates the spatial-temporal disparity
evident in rural household incomes at the provincial level in China in the
period 1978-2007. The research is introduced through a framework comprising
the transitional processes of decentralization, marketization,
urbanization, and globalization. The research uses Moranís I index and the
spatial regression model. Research results show a clear spatial-temporal
disparity in rural household incomes in China in the post-reform era,
whereby the eastern provinces possess higher rural household incomes in
comparison to the lower rural household incomes of the inland provinces.
This disparity is attributed to the joint influence of processes of
marketization, urbanization, and globalization upon household incomes
derived from the non-agricultural industries. Decentralization proves to be
non-significant in explaining the disparity in rural household incomes
across China, as a result of the agricultural income generated from the
limited household land allocated to each rural household.
Keywords: Rural household income; spatial-temporal; Moranís; transitional process; China; (follow links to similar papers)
JEL-Codes: N95; O11; R11; R58; (follow links to similar papers)
29 pages, April 18, 2012
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