China's inter-provincial disparities - An explanation

China's inter-provincial output and livelihood disparities moved in differe nt directions in the pre-reform and the reform periods. This paper sets out to identify the driving forces behind these developments. It suggests that in the transition to a market system, China has succeeded in narrowing int er-provincial output disparities by pursuing outward-looking and de-nationa lisation oriented industrialisation, but has failed to prevent a widening o f inter-provincial livelihood disparities owing to the weakening of governm ent intervention in the form of regional income redistribution. (C) 1999 Th e Regents of the University of California. Published by Elsevier Science Lt d, All rights reserved.