This paper analyzes the development of intra-provincial regional disparities in China
between 1989 and 2001. Although previous studies did find evidence for significant regional
disparities on the sub-provincial level, research on this topic remains sparse and mostly
piecework. Neither trends nor causalities are sufficiently understood. Therefore, the
purpose of this paper is to provide an consistent measurement of level, development and
relative importance of intraregional disparities.
The results show that intraregional disparities contribute significantly to total inequality,
and that the relative importance of these disparities is even increasing in recent years. By
further decomposing intra-provincial income disparities, it is found that regional components
account for about half of the measured intra-provincial inequality. Thus, the spatial
component of intraprovincial disparities - compared with a sectoral or rural-urban division -
should not be ignored. Additionally, the need for analysis on lower levels of aggregation is
highlighted. Generally, the results call for a further analysis of intraregional disparities on
the sub-provincial level.