Energy Resources and Income Inequality: Determinants of Income Inequality in Provincial China


Previous studies have investigated the factors underlying China’s income inequality. However, an important factor—the influence of natural resources—has been overlooked. To reinforce understanding of the factors contributing to income inequality in China, this study examines the role of energy resources in income inequality. This study established a 2005–10 provincial panel data set and adopted a dynamic panel data model with system GMM (generalised method of moments) estimators as empirical strategies. The results demonstrate that provinces that are more dependent on energy resources exhibit higher levels of income inequality and the findings are robust under different measures of income inequality.