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Foreign direct investment and income inequality in China

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Authors
Jin, Furong
Issue Date
2009-07
Publisher
Institute of Economic Research, Seoul National University
Citation
Seoul Journal of Economics, Vol.22 No.3, pp. 311-339
Keywords
FDIChinaIncome inequalityWithin-urban inequalityUrban-rural gap
Abstract
This paper examines the impact of foreign direct investment

(FDI) on Chinas income inequality. Two measures of inequality

are used in this study: inequality within the urban community and

the urban-rural income gap. Data covering 25 provinces from

1990 to 2006 are analyzed using the following techniques: fixed

effects, random effects, and system GMM. This study finds that:

(1) FDI significantly increases urban inequality and the distributional

effect of FDI on urban inequality is robust in all the techniques

and different measures of FDI used. (2) there is no evidence that

FDI widens income disparity between urban and rural areas.
ISSN
1225-0279
Language
English
URI
https://hdl.handle.net/10371/67707
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College of Social Sciences (사회과학대학)Institute of Economics Research (경제연구소)Seoul Journal of Economics (SJE)Seoul Journal of Economics vol.22 no.1~4 (2009)
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