chapter  8
30 Pages

China’s provincial disparities and the determinants of provincial inequality


Since implementing economic reforms and opening up to the world market, China has experienced a continuously high rate of annual growth. The unprecedented boom in foreign direct investment (FDI) and the sustained increase in trade have been of impressive dimensions. This positive economic development enormously improved standards of living in China and had an important impact on the global economy in terms of foreign investment decisions and international trade. However, a different aspect of this economic success story was rising inequality within the country and sustained poverty in rural areas.