The People's Republic of China (PRC) has always emphasized a policy of achi
eving economic equality between regions. Yet regional disparity persists. D
uring the 1980s and 1990s, government policies increased the disparities be
tween regions, causing the eastern (coastal) region to advance at a greater
rate than the western and central regions. Using 1985 and 1991 city-level
data, this paper examines economic disparities across regions in the PRC an
d, within each region. It presents evidence on the magnitude and evolution
of regional disparities, and estimates the response of regional per capita
income (PCI) and per capita gross domestic product (PCGDP) both to specific
s of the regions and to national policies. (C) 2001 Elsevier Science Inc. A
ll rights reserved.