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Quarterly Journal of Econometrics Research

March 2015, Volume 1, 1, pp 13-22

An Empirical Test on Effect of Intra-Product Trade on Regional Income Distribution: The Case of Liaoning, China

Cui Yanjuan


Yu Jin

Cui Yanjuan 1

Yu Jin 2

  1. School of Management, Dalian Polytechnic University, Dalian, China 1

  2. School of Economics, Tianjin University of Commerce, Tianjin, China 2

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on PubMed

Pages: 13-22

DOI: 10.18488/journal.88/2015.1.1/

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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. 
Contribution/ Originality
This study contributes in the existing literature in two main areas. First, this study focuses on the effect of intra-product trade on urban and rural income gap. Second, this study does an empirical test with Liaoning China which is rarely discussed in the intra-product trade literature. 




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