The Chinese Inland-Coastal Inequality: The Role of Human Capital and the 2007–2008 Crisis Watershed

Emanuele Felice (), Iacopo Odoardi () and Dario D’Ingiullo ()
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Emanuele Felice: University of Chieti-Pescara
Iacopo Odoardi: University of Chieti-Pescara
Dario D’Ingiullo: University of Parma

Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, 2023, vol. 9, issue 2, No 13, 788 pages

Abstract: Abstract We investigate the role of human capital (HC) in the Chinese inland-coastal inequality and, related to this, how the consequences of the 2007–2008 crisis may induce China to re-focus its development path on HC. We compare panel data analyses for two periods (1998–2008 and 2009–2017) for two diverging groups of provinces (the richer/coastal and the relatively poor/inland areas). In the first period, the economic strengths that influenced the Chinese take-off and the dualism are confirmed. However, the results show that an evolution in local economic endowments is taking place: first, HC has a more evident economic effect after the crisis only in the inland provinces; second, the development path of the inland area is changing, with an evolution towards more productive sectors which can favor higher returns to HC.

Keywords: Human capital; China; Inland-coastal inequality; North–South problem (search for similar items in EconPapers)
JEL-codes: E24 O11 P25 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s40797-021-00169-w

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