Outsourcing the regional disparity in China

We use Chinese multi-region input-output model to calculate the inequality footprint as a measure for regional disparity in China. The inequality footprint quantifies the regional income gap producing from domestic economic... [ view full abstract ]

We use Chinese multi-region input-output model to calculate the inequality footprint as a measure for regional disparity in China. The inequality footprint quantifies the regional income gap producing from domestic economic activities in one region driven by the final demand from other regions and sectors. To achieve this aim, we use satellite indicators of employment and income for 30 Chinese provinces that matching Chinese multi-region input-output tables. Policy implications are expected with respect to the reduction of China’s regional disparity: 1) focusing on not only local development at the micro level but also underlying drivers of other regions at the macro level, 2) directing sector transferring of embodied income from production to consumption, and 3) guiding the inter-regional economic spillovers.