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Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

Postal Subscription Code 80-978

Front Econ Chin    2011, Vol. 6 Issue (2) : 188-210    https://doi.org/10.1007/s11459-011-0128-2
research-article |
Effective Factor Endowments, Trade Openness and Income Distribution in China
Xiaodong Lu(), Guowei Cai()
Lingnan College, Sun Yat-sen University, Guangzhou 510275, China
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Abstract

This paper studies the empirical relationship among factor endowment, trade openness and individual income distribution. Using panel data, we show that factor endowment characters, to some extent, explains income gap in China. First, land and Capital intensive provinces have a more equal income distribution while human capital and labor-intensive provinces have a less equal income distribution. Second, Trade openness has a significant effect on China’s income distribution; the interaction between a special endowment and openness has different effect on income distribution; we also show that FDI, economy development, unemployment and reform have considerable negative effect on income distribution. Our results are robust to various kinds of test.

Keywords income distribution      factor endowments      trade openness     
Corresponding Authors: Xiaodong Lu,Email:nkxiaodong@126.com; Guowei Cai,Email:zsucai@126.com   
Issue Date: 05 June 2011
 Cite this article:   
Xiaodong Lu,Guowei Cai. Effective Factor Endowments, Trade Openness and Income Distribution in China[J]. Front Econ Chin, 2011, 6(2): 188-210.
 URL:  
http://academic.hep.com.cn/fec/EN/10.1007/s11459-011-0128-2
http://academic.hep.com.cn/fec/EN/Y2011/V6/I2/188
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