Research on the Factors Affecting Inequality – Evidence from China

Income inequality in China is a prominent issue, especially in the regional area. Infrastructure development has been used as an important tool to boost regional economic development and reduce the income inequality problem. The aim of this paper is to examine whether the level of infrastructure development has an impact on regional income inequality in China, using inter-provincial data from China from 2008, 2013 and 2018. Three variables, namely road network density, railway density and postal road density were selected for statistical analysis in this paper. Considering the influence of the time dimension, the article uses the panel data method as the analysis method to analyze the factors of income inequality. The results show that infrastructure development is significant in reducing regional income inequality.