Exploring the effect of industrial agglomeration on income inequality in China.

Income inequality is a good indicator reflecting the quality of people's livelihood. There are many studies on the determinants of income inequality. However, few studies have been conducted on the impacts of industrial agglomeration on income inequality and their spatial correlation. The goal...

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Main Authors: Suhua Zhang, Yasmin Bani, Aslam Izah Selamat, Judhiana Abdul Ghani
Format: Article
Language:English
Published: Public Library of Science (PLoS) 2023-01-01
Series:PLoS ONE
Online Access:https://doi.org/10.1371/journal.pone.0287910
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author Suhua Zhang
Yasmin Bani
Aslam Izah Selamat
Judhiana Abdul Ghani
author_facet Suhua Zhang
Yasmin Bani
Aslam Izah Selamat
Judhiana Abdul Ghani
author_sort Suhua Zhang
collection DOAJ
description Income inequality is a good indicator reflecting the quality of people's livelihood. There are many studies on the determinants of income inequality. However, few studies have been conducted on the impacts of industrial agglomeration on income inequality and their spatial correlation. The goal of this paper is to investigate the impact of China's industrial agglomeration on income inequality from a spatial perspective. Using data on China's 31 provinces from 2003 to 2020 and the spatial panel Durbin model, our results show that industrial agglomeration and income inequality present an inverted "U-shape" relationship, proving that they are the non-linear change. As the degree of industrial agglomeration increases, income inequality will rise, after it reaches a certain value, income inequality will drop. Therefore, Chinese government and enterprises had better pay attention to the spatial distribution of industrial agglomeration, thereby reducing China's regional income inequality.
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spelling doaj.art-c8eeb44e0df44a5588ea8537506e50e12023-07-14T05:30:51ZengPublic Library of Science (PLoS)PLoS ONE1932-62032023-01-01186e028791010.1371/journal.pone.0287910Exploring the effect of industrial agglomeration on income inequality in China.Suhua ZhangYasmin BaniAslam Izah SelamatJudhiana Abdul GhaniIncome inequality is a good indicator reflecting the quality of people's livelihood. There are many studies on the determinants of income inequality. However, few studies have been conducted on the impacts of industrial agglomeration on income inequality and their spatial correlation. The goal of this paper is to investigate the impact of China's industrial agglomeration on income inequality from a spatial perspective. Using data on China's 31 provinces from 2003 to 2020 and the spatial panel Durbin model, our results show that industrial agglomeration and income inequality present an inverted "U-shape" relationship, proving that they are the non-linear change. As the degree of industrial agglomeration increases, income inequality will rise, after it reaches a certain value, income inequality will drop. Therefore, Chinese government and enterprises had better pay attention to the spatial distribution of industrial agglomeration, thereby reducing China's regional income inequality.https://doi.org/10.1371/journal.pone.0287910
spellingShingle Suhua Zhang
Yasmin Bani
Aslam Izah Selamat
Judhiana Abdul Ghani
Exploring the effect of industrial agglomeration on income inequality in China.
PLoS ONE
title Exploring the effect of industrial agglomeration on income inequality in China.
title_full Exploring the effect of industrial agglomeration on income inequality in China.
title_fullStr Exploring the effect of industrial agglomeration on income inequality in China.
title_full_unstemmed Exploring the effect of industrial agglomeration on income inequality in China.
title_short Exploring the effect of industrial agglomeration on income inequality in China.
title_sort exploring the effect of industrial agglomeration on income inequality in china
url https://doi.org/10.1371/journal.pone.0287910
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