{
  "title": "Two Sides of the Same Coin? Rebalancing and Inclusive Growth in China",
  "publication": "IMF Working Papers, August 27, 2013",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/two-sides-of-the-same-coin-rebalancing-and-inclusive-growth-in-china-40893",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/31/two-sides-of-the-same-coin-rebalancing-and-inclusive-growth-in-china-40893",
  "overlayPath": "/en/publications/wp/issues/2016/12/31/two-sides-of-the-same-coin-rebalancing-and-inclusive-growth-in-china-40893/index.md",
  "summary": "This paper uses the Shapley Value decomposition technique to assess the factors behind the rise of inequality in China. It finds that, in many ways, inequality may have been an inevitable by-product of China’s investment and export-led growth model.",
  "sections": [
    {
      "heading": "Main findings: drivers of rising inequality",
      "content": "- The paper applies the Shapley Value decomposition technique to assess factors behind the rise of inequality in China.\n- Inequality \"may have been an inevitable by-product of China’s investment and export-led growth model.\"\n- Between Chinese households, the most important factors explaining income inequality are:\n  - location\n  - education\n  - access to health insurance\n  - labor market variables, including the sector of employment and enterprise size\n- Across China’s provinces, divergences in per capita incomes are driven by:\n  - the relative level of capital-intensity\n  - public spending\n  - financial access\n  - privatization\n  - urbanization\n- Excess liquidity may have exacerbated inequality in the last decade by driving up property prices and the wealth gap."
    },
    {
      "heading": "Policy recommendations to broaden the benefits of growth",
      "content": "- Maintain prudent monetary and credit policies.\n- Implement a more progressive fiscal tax and expenditure system.\n- Increase public spending on health and education.\n- Undertake deregulation and reforms to increase competition.\n- Adopt measures to raise labor incomes and assist vulnerable workers.\n- Improve access to finance for both households and SMEs, including in rural areas.\n- Note: many of these reforms overlap with measures that would help rebalance the economy toward consumption and household incomes."
    },
    {
      "heading": "Publication and metadata",
      "content": "- Title: Two Sides of the Same Coin? Rebalancing and Inclusive Growth in China\n- Authors: Il Houng Lee, Murtaza H Syed, Xin Wang\n- Date: August 27, 2013\n- Series: Working Paper No. 2013/185\n- Issue: 185\n- Volume: 2013\n- Pages: 24\n- DOI: https://doi.org/10.5089/9781484386576.001\n- Stock No: WPIEA2013185\n- ISBN: 9781484386576\n- ISSN: 1018-5941\n\nSource: Two Sides of the Same Coin? Rebalancing and Inclusive Growth in China, IMF Working Papers 2013/185 (August 27, 2013).\n\n---\n\n Content in this bundle\n\n- wp13185\n  - wp13185 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp13185 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/two-sides-of-the-same-coin-rebalancing-and-inclusive-growth-in-china-40893"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2016/12/31/two-sides-of-the-same-coin-rebalancing-and-inclusive-growth-in-china-40893/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2016/12/31/two-sides-of-the-same-coin-rebalancing-and-inclusive-growth-in-china-40893/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2016/12/31/two-sides-of-the-same-coin-rebalancing-and-inclusive-growth-in-china-40893/bundle-manifest.json)",
    "Authors: Il Houng Lee, Murtaza H Syed, Xin Wang",
    "Published: August 27, 2013",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484386576.001",
    "The paper applies the Shapley Value decomposition technique to assess factors behind the rise of inequality in China.",
    "Inequality \"may have been an inevitable by-product of China’s investment and export-led growth model.\"",
    "Between Chinese households, the most important factors explaining income inequality are:",
    "Across China’s provinces, divergences in per capita incomes are driven by:",
    "Excess liquidity may have exacerbated inequality in the last decade by driving up property prices and the wealth gap.",
    "Maintain prudent monetary and credit policies.",
    "Implement a more progressive fiscal tax and expenditure system.",
    "Increase public spending on health and education.",
    "Undertake deregulation and reforms to increase competition.",
    "Adopt measures to raise labor incomes and assist vulnerable workers.",
    "Improve access to finance for both households and SMEs, including in rural areas.",
    "Note: many of these reforms overlap with measures that would help rebalance the economy toward consumption and household incomes.",
    "Title: Two Sides of the Same Coin? Rebalancing and Inclusive Growth in China",
    "Authors: Il Houng Lee, Murtaza H Syed, Xin Wang",
    "Date: August 27, 2013",
    "Series: Working Paper No. 2013/185",
    "Issue: 185",
    "Volume: 2013",
    "Pages: 24",
    "DOI: https://doi.org/10.5089/9781484386576.001",
    "Stock No: WPIEA2013185",
    "ISBN: 9781484386576",
    "ISSN: 1018-5941",
    "**_wp13185**"
  ],
  "related": [
    {
      "title": "_wp13185",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2013/_wp13185.pdf",
      "summary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2013/_wp13185.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2013/_wp13185.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2016/12/31/two-sides-of-the-same-coin-rebalancing-and-inclusive-growth-in-china-40893/index.md",
    "json": "/en/publications/wp/issues/2016/12/31/two-sides-of-the-same-coin-rebalancing-and-inclusive-growth-in-china-40893/index.json",
    "bundleManifest": "/en/publications/wp/issues/2016/12/31/two-sides-of-the-same-coin-rebalancing-and-inclusive-growth-in-china-40893/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-18T09:35:44.350Z"
}