The impact of trade liberalisation on income distribution in China
While poverty has been declining with strong income growth, China’s income distribution has deteriorated in recent years. Trade policy has been advocated to address income disparities, especially those between rural and urban households. Using a computable general equilibrium model, this paper analyses the impact of trade policy on incomes of different households. Particular attention is given to the various non-farm sources of incomes for rural and urban factor markets.
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