IDEAS home Printed from https://ideas.repec.org/a/bla/apacel/v35y2021i1p120-133.html
   My bibliography  Save this article

Chinese imports and income inequality: evidence from six East Asian economies

Author

Listed:
  • Mathew Y. H. Wong

Abstract

The study adopts a mixed‐methods design with quantitative and narrative accounts of inequality formation in Hong Kong, Japan, Macau, Singapore, South Korea, and Taiwan. Imports from China, but not elsewhere, have a strong positive impact on domestic income inequality. With growing volume of cheaper imports, local industries lose competitiveness or even relocate to China in some cases. This paper suggests manufacturing employment as one of the causal pathways from Chinese imports to rising income inequality, as the wage gap between the top and bottom widened following the loss of middle‐wage manufacturing jobs.

Suggested Citation

  • Mathew Y. H. Wong, 2021. "Chinese imports and income inequality: evidence from six East Asian economies," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 35(1), pages 120-133, May.
    • Handle: RePEc:bla:apacel:v:35:y:2021:i:1:p:120-133
    DOI: 10.1111/apel.12317
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/apel.12317
    Download Restriction: no
    File URL: https://libkey.io/10.1111/apel.12317?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Barro, Robert J, 2000. "Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
    2. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," The World Bank Economic Review, World Bank, vol. 11(2), pages 357-382, May.
    3. Ramesh Mishra, 1999. "Globalization and the Welfare State," Books, Edward Elgar Publishing, number 826.
    4. Honglin Zhang, Kevin, 2005. "Why does so much FDI from Hong Kong and Taiwan go to Mainland China?," China Economic Review, Elsevier, vol. 16(3), pages 293-307.
    5. Sonny Lo, 2009. "Casino Capitalism and Its Legitimacy Impact on the Politico-administrative State in Macau," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 38(1), pages 19-47.
    6. Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," The World Bank Economic Review, World Bank, vol. 11(1), pages 33-57, January.
    7. Cameron, David R., 1978. "The Expansion of the Public Economy: A Comparative Analysis," American Political Science Review, Cambridge University Press, vol. 72(4), pages 1243-1261, December.
    8. World Bank, 2011. "Regional Highlights World Development Indicators 2011," World Bank Publications - Books, The World Bank Group, number 27344.
    9. Kazuo Sato, 1995. "Economic Growth, Foreign Trade, and Trade Policy in Japan," The World Economy, Wiley Blackwell, vol. 18(2), pages 193-217, March.
    10. Adrian Wood, 1997. "How Trade Hurt Unskilled Workers," Palgrave Macmillan Books, in: Jitendralal Borkakoti & Chris Milner (ed.), International Trade and Labour Markets, chapter 7, pages 140-168, Palgrave Macmillan.
    11. Dani Rodrik, 1998. "Has Globalization Gone Too Far?," Challenge, Taylor & Francis Journals, vol. 41(2), pages 81-94, March.
    12. Zhigang Tao & Y. C. Richard Wong, 2002. "Hong Kong: From an Industrialised City to a Centre of Manufacturing-related Services," Urban Studies, Urban Studies Journal Limited, vol. 39(12), pages 2345-2358, November.
    13. Huff, W. G., 1995. "The developmental state, government, and Singapore's economic development since 1960," World Development, Elsevier, vol. 23(8), pages 1421-1438, August.
    14. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    15. David Dollar & Aart Kraay, 2004. "Trade, Growth, and Poverty," Economic Journal, Royal Economic Society, vol. 114(493), pages 22-49, February.
    16. World Bank, 2011. "World Development Indicators 2011," World Bank Publications - Books, The World Bank Group, number 2315.
    17. Ge, Wei, 1999. "Special Economic Zones and the Opening of the Chinese Economy: Some Lessons for Economic Liberalization," World Development, Elsevier, vol. 27(7), pages 1267-1285, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thierry Verdier, 2005. "Intégration commerciale « socialement responsable » : une approche en termes d'économie politique," Revue d’économie du développement, De Boeck Université, vol. 13(4), pages 55-121.
    2. Grabiella Berloffa & Maria Luigia Segnana, 2004. "Trade, inequality and pro-poor growth: Two perspectives, one message?," Department of Economics Working Papers 0408, Department of Economics, University of Trento, Italia.
    3. Kosack, Stephen & Tobin, Jennifer L., 2015. "Which Countries’ Citizens Are Better Off With Trade?," World Development, Elsevier, vol. 76(C), pages 95-113.
    4. Guerriero, Marta & Sen, Kunal, 2012. "What Determines the Share of Labour in National Income? A Cross-Country Analysis," IZA Discussion Papers 6643, Institute of Labor Economics (IZA).
    5. Nissanke, Machiko & Thorbecke, Erik, 2006. "Channels and policy debate in the globalization-inequality-poverty nexus," World Development, Elsevier, vol. 34(8), pages 1338-1360, August.
    6. Khan, Rana Ejaz Ali & Sattar, Rashid, 2010. "Trade, Growth and Povety: A Case of Pakistan," MPRA Paper 20904, University Library of Munich, Germany.
    7. Paolo Epifani & Gino Gancia, 2008. "The Skill Bias of World Trade," Economic Journal, Royal Economic Society, vol. 118(530), pages 927-960, July.
    8. Bourguignon, Francois, 2005. "The Effect of Economic Growth on Social Structures," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 27, pages 1701-1747, Elsevier.
    9. T. Gries & R. Grundmann & I. Palnau & M. Redlin, 2017. "Innovations, growth and participation in advanced economies - a review of major concepts and findings," International Economics and Economic Policy, Springer, vol. 14(2), pages 293-351, April.
    10. Mr. Gary G. Moser & Mr. Toshihiro Ichida, 2001. "Economic Growth and Poverty Reduction in Sub-Saharan Africa," IMF Working Papers 2001/112, International Monetary Fund.
    11. Amaia Altuzarra & Catalina Gálvez-Gálvez & Ana González-Flores, 2021. "Is Gender Inequality a Barrier to Economic Growth? A Panel Data Analysis of Developing Countries," Sustainability, MDPI, vol. 13(1), pages 1-21, January.
    12. Elena Horská & Luboš Smutka & Mansoor Maitah, 2012. "The impacts of the global economic crisis on selected segments of the world trade in commodities," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(7), pages 101-110.
    13. Winters, L Alan, 2000. "Trade, Trade Policy and Poverty: What Are The Links?," CEPR Discussion Papers 2382, C.E.P.R. Discussion Papers.
    14. Ayal Kimhi, 2004. "Growth, Inequality and Labor Markets in LDCs: A Survey," CESifo Working Paper Series 1281, CESifo.
    15. Pierre, Gaëlle & Scarpetta, Stefano, 2004. "Employment Regulations through the Eyes of Employers: Do They Matter and How Do Firms Respond to Them?," IZA Discussion Papers 1424, Institute of Labor Economics (IZA).
    16. Xiao Tan, 2017. "Explaining provincial government health expenditures in China: evidence from panel data 2007–2013," China Finance and Economic Review, Springer, vol. 5(1), pages 1-21, December.
    17. Rao, B. Bhaskara & Vadlamannati, Krishna Chaitanya, 2011. "Globalization and growth in the low income African countries with the extreme bounds analysis," Economic Modelling, Elsevier, vol. 28(3), pages 795-805, May.
    18. Asma Boussetta, 2022. "Microfinance, Poverty and Education," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(1), pages 86-108, March.
    19. Stimpfle, Alexander & Stadelmann, David, 2015. "The Impact of Fundamental Development Factors on Different Income Groups: International Evidence," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113128, Verein für Socialpolitik / German Economic Association.
    20. Damian Raess & Andreas Dür & Dora Sari, 2018. "Protecting labor rights in preferential trade agreements: The role of trade unions, left governments, and skilled labor," The Review of International Organizations, Springer, vol. 13(2), pages 143-162, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:apacel:v:35:y:2021:i:1:p:120-133. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://onlinelibrary.wiley.com/journal/14678411 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.