Sources of income differences across Chinese provinces during the reform period: a development accounting exercise
The present paper performs a development accounting analysis to investigate the sources of China's interprovincial income inequality over the period 1982-2005. We estimate a Cobb-Douglas aggregate production function with various specifications. Using the estimated parameters, we conduct a development accounting analysis as well as a variance decomposition. Our results suggest that differences in physical capital intensity and in total factor productivity are both important sources of...[Show more]
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