—This paper intends to address the issue of the
inequality in the economy development in China with the use of
Total Factor Productivity in analyzing the productivity and
efficient used of resources. The study focuses on regional
analysis to determine the inequality patterns among the
provinces in China with the objective to address the issues of
inequality among the provinces in China which my dampened
the economic development in the country. The sample of the
study consist of 30 provinces in China starts from year 1978 to
2008 in order to investigate the economic efficiency and
productivity change of the Chinese’s economy after the China
reformation in 1978. The results show that the Eastern region is
relatively more efficient as compared to the Western and
Central region in China. Results further found that the main
contributor of economic inefficiency in China is mainly due to
pure technical inefficiency. The technological change plays is
found to play an important role in providing a road for
sustainable economy development in China.
—Productivity change, economy efficiency,
inequality, Malmquist Index, China.
S. G. Chan is a senior lecturer in Institute of China Studies, University of
Malaya, 50603 Kuala Lumpur, Malaysia. (e-mail: email@example.com).
Cite:S. G. Chan, "The Inequality of the Provinces in China: A Productivity Analysis," International Journal of Trade, Economics and Finance vol.3, no.4, pp. 311-315, 2012.