Widening Inter-County Inequality in Jiangsu Province, China, 1950-95

Scholars have heatedly debated the change of regional inequality in China and policies for intervention. However, most studies on China are based on macro regions and provinces, and have paid less attention to trends and mechanisms of regional inequality within provinces. This paper uses time-series county data to examine inter-county inequality in Jiangsu from 1950 to 1995. We find that inter-county inequality in Jiangsu did not change much under Mao and during the rural reform period (1978-84), but dramatically intensified in the urban-based comprehensive reform period (since 1984). Regression analysis reveals that the institutional structure, agglomeration effects, and human capital are important factors underlying the divergence of inter-county inequality in Jiangsu.