What has caused regional income inequality in China? Effects of 10 socioeconomic factors on per capita income

This study analyzes the driving factors behind regional income inequality to provide an important reference for China and other developing countries and to support the formulation of more effective regional development policies. The study used data from 625 county-level administrative units in China in 2017 and conducted a total factor analysis of China's regional income based on 10 economic dimensions using spatially explicit regression methods. The results show that commerce, population footprint, industrialization, and investment are the main factors that affected a Chinese region’s income, but different factors have different degrees of influence in different regions. The impact of economic institutions (developing an institutionally diverse market economy) on income cannot be ignored. Based on our findings, China should give local governments more autonomy, so they can formulate strategies that account for local constraints and opportunities, thereby increasing their chances of decreasing regional income inequality.