Analyzing the multi-mechanism of regional inequality in China

Abstract

This paper advances the multi-mechanism framework, integrates the GIS technology and spatial panel data models for analyzing regional inequality mechanism. Applying this integrated methodology, we investigate China’s regional inequality at the county level using a comprehensive panel dataset that includes socioeconomic, environmental, locational, policy and GIS data from 1992 to 2010. The results show that Chinese regional inequality at the county level has a non-stationary dynamic structure, mirroring global inequality and spatial autocorrelation. In addition, the spatial panel data models analysis reveals the relative influence of explanatory variables. The impact of essential productive factors on regional development is gradually fading. Industrialization and decentralization play the most important role. The influence of marketization on regional development is not clear. The expansion of urban built-up areas has exerted a strong influence on the uneven regional development. Policy and transportation factor plays an indispensable role in regional inequality. The analysis additionally recognizes that socioeconomic factors play a dominant role, beyond policy and location factors. The role of environmental factors appears to be masked. This paper suggests that more attention needs to be paid to micro-inequality to coordinate inter-county and intra-county inequality under the pressure of rapid industrialization, urbanization and modernization of agriculture. Given the pattern of economic development, deepening balanced development reforms, optimizing and upgrading the industrial structure might be effective ways to develop a more coordinated regional development structure in China at the county level.