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Are spatial imbalances in industrial structural change widening the common wealth gap?
1School of Economics and Management, Shanxi University, Taiyuan, 030006, China.
Heliyon
|August 8, 2024
Summary
China's industrial structure evolved from 2010-2021, showing spatial imbalances. Reducing advanced industrial structure gaps is key to narrowing the common wealth disparity.
Area of Science:
- Economics
- Regional Science
- Industrial Organization
Background:
- China's industrial structure underwent significant transformation between 2010 and 2021.
- Understanding the spatial dynamics and wealth implications of this evolution is crucial for balanced development.
Purpose of the Study:
- To analyze the rationalization and sophistication of China's industrial structure from 2010 to 2021.
- To investigate the relationship between industrial structure imbalance and wealth disparity using spatial analysis.
Main Methods:
- Theil index was employed to quantify spatial variability in industrial structure.
- Quadratic Assignment Procedure (QAP) was utilized to assess the impact of industrial structure changes on wealth disparity.
Main Results:
- A notable spatial imbalance in industrial structure change was observed, with a general east-to-west and north-to-south gradient in common wealth.
- Common wealth levels increased over the study period, but disparities persisted, with regional leaders like Beijing and Shanghai contrasting with lagging regions like Guangxi.
- Transitioning between developmental echelons proved challenging, particularly moving to higher levels.
Conclusions:
- Spatial imbalances in industrial structure significantly widen the common wealth gap.
- Disparities in advanced industrial structure have a greater impact on common wealth gaps than industrial rationalization.
- Targeting reductions in advanced industrial structure disparities offers a more effective strategy for mitigating overall wealth inequality.
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