Quarterly Journal of Econometrics Research 2518-2536 2411-0523 10.18488/journal.88/2015.1.1/88.1.13.22 Quarterly Journal of Econometrics Research An Empirical Test on Effect of Intra-Product Trade on Regional Income Distribution: The Case of Liaoning, China Quarterly Journal of Econometrics Research Quarterly Journal of Econometrics Research 03-2015 2015 03-2015 03-2015 1 1 13 22 30 Nov 30 Nov This paper examines the relationship between intra-product trade and regional income distribution by empirical tests of co-integration and Granger causality with  time series data from 1994 to 2013. The conclusion shows that intra-product trade and regional income distribution have a long-term equilibrium relationship. The exports of intra-product trade can significantly reduce the income gap between urban and rural residents, while the imports have a negative influence. At the meantime, the intra-product exports and imports are the one-way causal of income distribution. In addition, the capital contribution can enlarge the urban and rural income gap significantly. Education also has a negative influence, but it is non-significant.