Regional Inequality, Industry Agglomeration and Foreign Trade: The Case of China

Ying Ge

No RP2006-105, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: How do foreign trade and foreign direct investment affect regional inequality? Foreign trade and investment may affect internal economic geography, and the resulting industry agglomeration may contribute to regional inequality. This paper provides empirical evidence supporting this linkage. The results indicate that the increasing regional inequality in China has been accompanied by an increase in the degree of regional specialization and industry agglomeration. Foreign trade and foreign investment are closely related to industry agglomeration in China.

Keywords: Economic integration; Equality and inequality; Industries; International trade; Regional economics (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (10)

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