Spatial Analysis of City Income Distribution Dynamics in China

We employ Quah’s [13] transitional matrix and Rey’s [16] Spatial Clustering Index (SCI) to analyze the dynamics in Chinese city income distribution both from temporal and spatial dimensions. Our empirical results show that cities in eastern China enjoy more favorable movements in income distribution during urban post-reform era compared with her western and central counterparts; the dynamic spatial dependence is noticeable in the provincial level but not in the regional level, even though the static spatial clustering is apparent; there is no obvious evidence for the effectiveness of the Western Region Development Plan in helping the poor cities out of their current status in its very beginning four years.