201. Financial Development and Income Inequality in Rural China 1991-2000
- Author:
- Zhicheng Liang
- Publication Date:
- 09-2006
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- Financial development can exert a significant influence on the distribution of income. In this paper, using Chinese provincial data over the period of 1991-2000 and applying the generalized method of moment (GMM) techniques, we investigate the relationship between finance and inequality in rural China by testing alternative existing theories concerning the finance-inequality nexus. A negative and linear relationship between finance and inequality is found in our estimations. The empirical results show that financial development significantly reduces income inequality in post-reform rural China.
- Topic:
- Demographics, Development, and Economics
- Political Geography:
- China and Asia