Please wait a minute...

Frontiers of Economics in China

Front Econ Chin    2011, Vol. 6 Issue (2) : 188-210
Effective Factor Endowments, Trade Openness and Income Distribution in China
Xiaodong Lu(), Guowei Cai()
Lingnan College, Sun Yat-sen University, Guangzhou 510275, China
Download: PDF(528 KB)   HTML
Export: BibTeX | EndNote | Reference Manager | ProCite | RefWorks

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.

Keywords income distribution      factor endowments      trade openness     
Corresponding Author(s): Xiaodong Lu,; Guowei Cai,   
Issue Date: 05 June 2011
 Cite this article:   
Xiaodong Lu,Guowei Cai. Effective Factor Endowments, Trade Openness and Income Distribution in China[J]. Front Econ Chin, 2011, 6(2): 188-210.
E-mail this article
E-mail Alert
Articles by authors
Xiaodong Lu
Guowei Cai
Related articles from Frontiers Journals
[1] Juan Yang, Shi Li. The Impact of Rustication on Sent-Down Cohorts’ Income[J]. Front Econ Chin, 2011, 6(2): 290-310.
[2] Hao Zhou, Wei Zou , . Income Distribution Dynamics of Urban Residents: The Case of China (1995–2004)[J]. Front. Econ. China, 2010, 5(1): 114-134.
[3] FANG Fuqian, . An inquiry into the causes of inadequate household consumption in China—An analysis based on provincial data of urban and rural China[J]. Front. Econ. China, 2009, 4(4): 526-547.
[4] HE Lixin. The distributional effects of public pension reform in urban China[J]. Front. Econ. China, 2008, 3(2): 255-276.
[5] ZHOU Tianyong. Institutional causes for the slowing transition, unemployment and unequal distribution[J]. Front. Econ. China, 2007, 2(2): 169-186.
[6] YIN Heng, GONG Liutang, ZOU Heng-fu. Income inequality and economic growth——the Kuznets curve revisited[J]. Front. Econ. China, 2006, 1(2): 196-206.
Full text