Xiuyan Liu , Xingmin Yin
Author information
a School of Economics & Management, Southeast University, Nanjing 210096, China
b China Center for Economic Studies, Fudan University, Shanghai 200433, China
Abstract
Based on panel data of 282 prefectures in China from 1999 to 2004; we explore the relationship between market potential, employment density and per capita GDP by using a dynamic panel data approach. It is found that the externalities arising from market potential and employment density have a positive and significant effect on local income. Moreover, both absolute and standardized elasticity of market potential externalities are pronounced, which suggests that market potential has a greater impact on regional disparity.
spatial externalities , income inequality , market potential , dynamic panel
Xiuyan Liu , Xingmin Yin , . Spatial Externalities and Regional Income Inequality: Evidence from China’s Prefecture- Level Data. Front. Econ. China, 2010, 5(2): 325‒338 https://doi.org/10.1007/s11459-010-0016-1