Geographically Heterogeneous Spatial Inequality in the People’s Republic of China: A Luminosity-Based Analysis of Prefectural Cities and Counties
Yilin Chen
Abstract
This study examines regional income and inequality in the People’s Republic of China from 2001 to 2020 using high-quality nighttime light (NTL) data to help proxy for the gross domestic product (GDP). The NTL-based dataset for 332 Chinese prefectural cities and 2,813 county-level units that integrates GDP with luminosity measurements reveals three key facts: (i) Inequality derived from luminosity-based GDP data aligns more closely with the official GDP-based inequality trends, showing no clear downward trend, unlike the luminosity data alone; (ii) spatial dependence significantly influences patterns of economic development and economic disparities; and (iii) there is a geographic heterogeneity in spatial spillovers, with stronger agglomeration effects only in coastal areas where these effects promote economic development and reduce inequality. These insights highlight the varied impacts of regional development strategies for achieving common prosperity in the People’s Republic of China’s coastal, central, western, and northeastern regions.