Income Disparity and Economic Growth: Evidence from People's Republic of China

Duo Qin, Marie Anne Cagas (), Geoffrey Ducanes, Xinhua He, Rui Liu and Shiguo Liu
Additional contact information
Marie Anne Cagas: Asian Development Bank
Xinhua He: Chinese Academy of Social Sciences
Rui Liu: Chinese Academy of Social Sciences
Shiguo Liu: Chinese Academy of Social Sciences

No 84, ADB Economics Working Paper Series from Asian Development Bank

Abstract: This pilot empirical study seeks to ascertain how income inequality affects growth by incorporating panel data information into a macroeconometric model. People's Republic of China is used as the pilot field. Provincial urban and rural household data are used to construct income inequality measures, which are then used to augment household consumption equations in a quarterly macroeconometric model. Model simulations are performed to study the inequality effect on gross domestic product growth and its sectoral components. Results show that income inequality forms robust explanatory variables of consumption and that the way inequality develops carries certain negative consequences on gross domestic product and sectoral growth.

Keywords: income inequality; growth; panel data; macroeconometric model; sectoral components (search for similar items in EconPapers)
JEL-codes: C23 D31 O15 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2006-10-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.adb.org/publications/income-disparity- ... oples-republic-china Full text (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:0084

Access Statistics for this paper

More papers in ADB Economics Working Paper Series from Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines. Contact information at EDIRC.
Bibliographic data for series maintained by Orlee Velarde ().