INTERPRETING OVERALL INEQUALITY IN CHINA: THE ROLES OF PHYSICAL CAPITAL, HUMAN CAPITAL AND SOCIAL CAPITAL

Yuheng Li (liyuheng@igsnrr.ac.cn) and Hans Westlund
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Yuheng Li: Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, 11A Datun Road, Chaoyang District, Beijing, 100101, China

Regional Science Inquiry, 2013, vol. V, issue 2, 145-150

Abstract: This paper investigates the relationship between overall inequality in China and the contributions of physical capital, human capital and social capital. The investment in physical capital tends to enlarge overall inequality while human capital helps to reduce the inequality. Human capital appears to be more influential than physical capital in overall inequality reduction in the research period. Social capital (people’s social networks) however, does not seem to exert any impact on overall inequality in the post-reform era. Possible policy implications of these results are that measures should be taken to pursue more even distributed investment of physical capital and to increase people’s education in order to reduce overall inequality in China.

Keywords: Overall inequality; Capital investment; Economic growth; China (search for similar items in EconPapers)
JEL-codes: D24 E22 E24 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:hrs:journl:v:v:y:2013:i:2:p:145-150

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