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An Analysis of Convergence in Per Capita Income of Chinese Regions

Student: Gong Changbin

Supervisor: Dmitry A. Veselov

Faculty: HSE Banking Institute

Educational Programme: Financial Analyst (Master)

Year of Graduation: 2020

This master’s thesis examines the regional per capita income disparity and regional per capita income convergence in China in the recent period from 2000 to 2018. This paper utilizes academically accepted methodological tools to measure income inequality and income convergence. Convergence is measured both in conditional and unconditional terms. As a result, this study reveals reduction in regional income disparity and finds basis not to reject absolute and relative convergence of regional income in China between 2000 and 2018. Key words: China, regional income disparities, regional inequality, Theil index, Gini coefficient, regional income convergence, sigma convergence, beta convergence.

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