Economic Development And Inequality In China

This volume provides comprehensive, up to date coverage of inequality and poverty issues in China. Going beyond standard data sources and using state-of-art research techniques, this volume substantiates a number of findings and conclusions and ensures policy recommendations are reliable and robust.

Thesis (M.A.) from the year 2019 in the subject Business economics - Economic Policy, grade: 1,7, University of Bayreuth, language: English, abstract: This thesis aims to shed light to the various characteristics and sources of income inequality in China and thereby demonstrate their interrelations on economic growth using a literature review approach and by examining the impact of differences in the propensity to save among various Chinese income groups. In the course of this, China’s current degree of income inequality is established, while identifying various forces and drivers behind these changes since the economic opening process initiated in 1978. Since adoption of the open-market policy reforms in 1978, China has experienced rapid economic growth. At the same time, its level of income inequality turned from one of the world's most equal to one of the most unequal. During long periods of time China was the country that experienced the fastest increase in income inequality. This bags the question whether income inequality is in fact the causal reason for economic growth or the necessary outcome of it. In the wake of this, income inequality in China has developed into several dimensions of inequality drivers ranging from an extensive urban-rural inequality, cross-regional inequality, inequality of education or wealth inequalities.

The world at large is watching both China and India as powerhouses of economic growth. The two nations have achieved significantly high rates of economic growth ever since their respective economies liberalized in 1978 and 1991. Singapore, despite its limited land size and almost total dependence on external trade, has performed remarkably well and has moved from the third world to the first. This book documents and explains the rapid economic growth of the three key Asian economies.The book also looks at what has happened to income inequality in the context of superior growth performance. It makes comparative assessments and examines the implications for the three nations. Since free markets have nothing in them to produce a reduction in income inequality among persons/households, one must at best hope for equality of opportunity notably reflected in identical schooling for all; identical health care for all; and minimal rather than vulgar inequality in housing. This book is particularly useful for both China and India which may wish to study and learn from Singapore in regard to the policies, programmes and projects aimed at ensuring equality of opportunity. The book is backed by considerable expertise on the part of the researchers, with demonstrated expertise through their publications spawning a few decades. It is invaluable to those who are concerned with designing policies for developing countries aimed at rapid and inclusive economic growth.This book has been made possible by the intellectual and financial support extended by the Global Asia Institute, National University of Singapore.

Presents the analysis of specialists on causes, benefits and problems resulting from China's transition to a market economy. This book deals with several facets of China's economic growth and its rising income inequality. It provides evidence on China's social and economic inequalities and their causes.

Abstract: The paper examines the ways in which recent economic growth has been uneven in China and India and what this has meant for inequality and poverty. Drawing on analyses based on existing household survey data and aggregate data from official sources, the authors show that growth has indeed been uneven-geographically, sectorally, and at the household level-and that this has meant uneven progress against poverty, less poverty reduction than might have been achieved had growth been more balanced, and an increase in income inequality. The paper then examines why growth was uneven and why this should be of concern. The discussion is structured around the idea that there are both "good" and "bad" inequalities-drivers and dimensions of inequality and uneven growth that are good or bad in terms of what they imply for both equity and long-term growth and development. The authors argue that the development paths of both China and India have been influenced by, and have generated, both types of inequalities and that while good inequalities-most notably those that reflect the role of economic incentives-have been critical to the growth experience thus far, there is a risk that bad inequalities-those that prevent individuals from connecting to markets and limit investment and accumulation of human capital and physical capital-may undermine the sustainability of growth in the coming years. The authors argue that policies are needed that preserve the good inequalities-continued incentives for innovation and investment-but reduce the scope for bad ones, notably through investments in human capital and rural infrastructure that help the poor connect to markets.

The conventional belief that all regions have equally benefited from China’s remarkable development over the last three decades is subjected to criticism in this book as Hong Yu systematically analyses the issue of regional inequality during the post-1978 period using the case of Guangdong. Guangdong is one of the key industrial centres and economic powerhouses in China and as a pioneer province, instigating economic reform as China opened up to the world, it offers an ideal focus upon which to question and enrich the Western theories of economic geography and regional disparity. Based on field research, analysis of geographic characteristics and regression models, this book illustrates how Guangdong’s impressive development record has been marred by its rising regional disparity, investigates the main causes of this disparity, and draws conclusions regarding the lessons China can learn from it. Economic Development and Inequality in China will be of interest to students and scholars of Chinese economics, Chinese regional studies, economic geography and China Studies. Hong Yu is a Visiting Research Fellow at the National University of Singapore. His research interests lie in the field of regional economy. He is the author of a chapter on China’s two delta regions in the book "China and The Global Economic Crisis".

China has experienced rapid economic growth over the past two decades and is on the brink of eradicating poverty. However, income inequality increased sharply from the early 1980s and rendered China among the most unequal countries in the world. This trend has started to reverse as China has experienced a modest decline in inequality since 2008. This paper identifies various drivers behind these trends – including structural changes such as urbanization and aging and, more recently, policy initiatives to combat it. It finds that policies will need to play an important role in curbing inequality in the future, as projected structural trends will put further strain on equity considerations. In particular, fiscal policy reforms have the potential to enhance inclusiveness and equity, both on the tax and expenditure side.

As regional inequality looms large in the policy debate in China, this volume brings together a selection of papers from authors whose work has had real impact on policy, so that researchers and policy makers can have access to them in one place.