Provincial Disparities in Post-reform China

Using conventional and novel techniques, the present paper analyzes the main characteristicsof Chinese provincial disparities during the reform period, specifically between 1978 and2007.After dismissing the presence of spatial dependence, three main results are obtained:first, provincial inequalities have basically followed a "V" trend; second, grouping Chinainto three large regions shows that inequality mainly lies within each region, particularly incoastal areas; and third, the analysis of intra-distribution dynamics reveals that, althoughthere was some significant mobility in provincial relative income, particularly until 1990,the whole period persistence in the ranking of income levels is a major feature.This mightprovoke some changes in the policy approach to dealing with spatial disparities.