Spatial Externalities and Regional Income Inequality:
Evidence from China’s Prefecture- Level Data

doi:10.1007/s11459-010-0016-1

Front. Econ. China

2010, Vol. 5

Issue (2) : 325-338 https://doi.org/10.1007/s11459-010-0016-1

Spatial Externalities and Regional Income Inequality: Evidence from China’s Prefecture- Level Data

Xiuyan Liu ¹, Xingmin Yin ²,

1.School of Economics & Management, Southeast University, Nanjing 210096, China; 2.China Center for Economic Studies, Fudan University, Shanghai 200433, China;

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Abstract Based on panel data of 282 prefectures in China from 1999 to 2004; we explore the relationship between market potential, employment density and per capita GDP by using a dynamic panel data approach. It is found that the externalities arising from market potential and employment density have a positive and significant effect on local income. Moreover, both absolute and standardized elasticity of market potential externalities are pronounced, which suggests that market potential has a greater impact on regional disparity.

Keywords spatial externalities income inequality market potential dynamic panel

Issue Date: 05 June 2010

Cite this article:

Xiuyan Liu,Xingmin Yin. Spatial Externalities and Regional Income Inequality: Evidence from China’s Prefecture- Level Data[J]. Front. Econ. China, 2010, 5(2): 325-338.

URL:

https://academic.hep.com.cn/fec/EN/10.1007/s11459-010-0016-1
https://academic.hep.com.cn/fec/EN/Y2010/V5/I2/325

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