European Parliament Library

Growing (Un)equal :, Fiscal Policy and Income Inequality in China and BRIC+, Serhan Cevik, Carolina Correa-Caro

This paper investigates the empirical characteristics of income inequality in China and a panel of BRIC+ countries over the period 1980–2013, with a focus on the redistributive contribution of fiscal policy. Using instrumental variable techniques to deal with potential endogeneity, we find evidence supporting the hypothesis of the existence of a Kuznets curve—an inverted Ushaped relationship between income inequality and economic development—in China and the panel of BRIC+ countries. In the case of China, the empirical results indicate that government spending and taxation have opposing effects on income inequality. While government spending appears to have a worsening impact, taxation improves income distribution. Even though the redistributive effect of fiscal policy in China appears to be stronger than what we identify in the BRIC+ panel, it is not large enough to compensate for the adverse impact of other influential factors
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; Figures; Tables; I. Introduction; Figure 1. Income Inequality and Fiscal Redistribution in China; II. China's Experience in the Global Context; Figure 2. China and the Rest of the World; III. An Overview of the Literature; IV. A Synopsis of China's Fiscal Policy; Figure 3. Evolution of Fiscal Policy in China; V. Data Description; Figure 4. Confidence Intervals of Gini Coefficients in China; Table 1. Descriptive Statistics: China; Table 2. Descriptive Statistics: BRIC+ Countries; VI. Empirical Strategy and Results
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (53 p.)
Specific Material Designation
Form Of Item

Library Locations

  • EP Library Luxembourg

    Rue du Fort Thüngen, Luxembourg, L-1313, LU
  • EP Library Strasbourg

    7 Place Adrien Zeller, Allée du Printemps, Strasbourg, F-67070, FR
  • EP Library Brussels

    60 rue Wiertz, Brussels, B-1047, BE