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Effective Factor Endowments, Trade Openness and Income Distribution in China

Effective Factor Endowments, Trade Openness and Income Distribution in China This paper studies the empirical relationship among factor endowment, trade openness and individual income distribution. Using panel data, we show that factor endowment characters, to some extent, explains income gap in China. First, land and Capital intensive provinces have a more equal income distribution while human capital and labor-intensive provinces have a less equal income distribution. Second, Trade openness has a significant effect on China’s income distribution; the interaction between a special endowment and openness has different effect on income distribution; we also show that FDI, economy development, unemployment and reform have considerable negative effect on income distribution. Our results are robust to various kinds of test. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Frontiers of Economics in China Brill

Effective Factor Endowments, Trade Openness and Income Distribution in China

Frontiers of Economics in China , Volume 6 (2): 188 – Jan 1, 2011

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References (24)

Publisher
Brill
Copyright
Copyright 2011 by Koninklijke Brill NV, Leiden, The Netherlands
ISSN
1673-3444
eISSN
1673-3568
DOI
10.1007/s11459-011-0128-2
Publisher site
See Article on Publisher Site

Abstract

This paper studies the empirical relationship among factor endowment, trade openness and individual income distribution. Using panel data, we show that factor endowment characters, to some extent, explains income gap in China. First, land and Capital intensive provinces have a more equal income distribution while human capital and labor-intensive provinces have a less equal income distribution. Second, Trade openness has a significant effect on China’s income distribution; the interaction between a special endowment and openness has different effect on income distribution; we also show that FDI, economy development, unemployment and reform have considerable negative effect on income distribution. Our results are robust to various kinds of test.

Journal

Frontiers of Economics in ChinaBrill

Published: Jan 1, 2011

Keywords: income distribution; factor endowments; trade openness

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