An Empirical Test on Effect of Intra-Product Trade on Regional Income Distribution: The Case of Liaoning, China

Cui Yanjuan and Yu Jin

Quarterly Journal of Econometrics Research, 2015, vol. 1, issue 1, 13-22

Abstract: This paper examines the relationship between intra-product trade and regional income distribution by empirical tests of co-integration and Granger causality with time series data from 1994 to 2013. The conclusion shows that intra-product trade and regional income distribution have a long-term equilibrium relationship. The exports of intra-product trade can significantly reduce the income gap between urban and rural residents, while the imports have a negative influence. At the meantime, the intra-product exports and imports are the one-way causal of income distribution. In addition, the capital contribution can enlarge the urban and rural income gap significantly. Education also has a negative influence, but it is non-significant.

Keywords: Intra-product trade; Income distribution; Liaoning; ADF test; Co-integration test; Granger causality test (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:pkp:qjoecr:v:1:y:2015:i:1:p:13-22:id:2554

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