The role of large countries (China and India in particular). Milanovic, “Global inequality and its implications” Lecture 10. 1. Large countries: an overview. See also Table 4. 2. Concept 1 and Concept 2 inequalities in large countries. Three concepts of inequality.
Milanovic, “Global inequality and its implications”
Highest regional inequality in China; lowest in the US (despite having 50 units)
China: regional convergence in the '80s
India & Indon. regional divergence throughout
US: regional convergence since early 80's
No real convergence: no systematic difference in real growth rates btw. the provinces
Between 1978 and 1990 prices rose faster in poorer regions
Nominal and real inequality rise step in step up to about 1991
Since then nominal divergence stops while real continues
Pricecatch-up of poorer provinces (better integrated domestic market?)
North to South
Red: fast growth (1σ above the mean)
Light yellow: slow (1σ below the mean)
Tamil Nadu (Madras)
New HampshireMassachusetts Connecticut
West to East
West to East
West Nusa Tenggara
Does not include oil and gas sectors.
In 1990-2000, poorer regions growing slower than the average
Beijing, Shanghai and Tienjin not shown
Source: from Kanbur and Zhang; 26 provincial means for rural and 26 for urban.
1990's: Increasing Concept 2 inequality in the three Asian countries
Highest inequality in Brazil. If all people in each state had the same income, Gini would be still more than 30. In the United States less than 10!
India: β and 95% confidence interval
Based on Ravallion & Chen (2004), Kanbur & Zhang (2002), Milanovic (2004)
From IndiaChina.xls file; China: based on HBS data; India based on state GDIs, italics: estimates
Recall Concepts 2 calculation: on Concept 2 Gini
Source: Jiang Zhiyong (2005)