TITLE:
The Effect of Territories on Inequalities of Opportunities for Citizens in China over Their Lives
AUTHORS:
Xiaoyang Du
KEYWORDS:
Development Economics, Territorial Inequality, Opportunity Inequality
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.10 No.9,
August
30,
2022
ABSTRACT: Inequality has been intensively studied for its role in promoting
balanced economic development in China. The territorial inequality of
coastal-inland provinces and urban-rural areas has been considered a leading
cause of opportunity inequality and unequal individual development in different
regions. This research aims to investigate how and to what extent territorial
inequality affects personal development. The research also aims to provide a
new understanding of inequality by presenting it throughout different life
stages, from pre-working age to retirement age. Also, the research aims to
evaluate the changes in data in terms of policies implemented by the Chinese
government. The research method includes a series of econometrics tools. The
research has adopted Ordinary Least Square (OLS) regression to analyse selected
data from the most up-to-date survey years, from 2000 to 2015. To reflect the
opportunity inequality, the study uses the ratio of the Gini coefficient from
regression and the Gini coefficient from the sample. The Theil index is used to
measure regional disparity, and the Mean Logarithmic Deviation Index is used to
measure income inequality. The study also examines the correlation between
different dependent variables to approach a more accurate and representative
conclusion. The study conducts the quantitative research successfully and
concludes territorial inequality strongly correlates with the inequality of
opportunity at education and income levels. Problems at the education level
have become more significant yearly, and the disparity in income distribution
remains high throughout the period. The extension test supports a weak
correlation between education and income, pension and education. The study
suggests that the government could allocate more resources and focus on
reducing territorial inequality by promoting technological advancement, geographical
mobility and a series of welfare policies.