Long-run relationship between inequality and growth in post-reform China : New evidence from dynamic panel model

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

6 Scopus Citations
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Author(s)

  • Tingting Li
  • Jennifer T. Lai
  • Yong Wang
  • Dingtao Zhao

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)238-252
Journal / PublicationInternational Review of Economics and Finance
Volume41
Early online date1 Sep 2015
Publication statusPublished - Jan 2016

Abstract

In this paper, we employ a panel of 27 Chinese provinces from 1984 to 2012 to estimate an autoregressive distributive lag model and find that there exists a robust positive long-run relationship between income inequality and growth in post-reform China. In addition, our estimation results indicate that physical capital investment, especially private capital investment, is a principal driver of the long-run growth in China, whereas the roles of human capital and public capital investment are largely ambiguous and insignificant. We also discuss the implications from comparing our estimation results with those obtained in another study using U.S. data.

Research Area(s)

  • Chinese economy, Economic growth, Income inequality, Panel data

Citation Format(s)