DOI QR코드

DOI QR Code

Characterizing Social Welfare Index between Urban and Rural Regions in China: An Application of Principal Component Analysis

중국의 도농 간 사회후생지표 특성에 관한 연구: 주성분분석에 의한 접근

  • Received : 2017.04.17
  • Accepted : 2017.06.01
  • Published : 2017.07.28

Abstract

The aim of this paper is to investigate adjusting process of trade-off relationship between economic growth and income distribution in China which is established by mixed with social and market-oriented economic systems. The characteristic nature of social welfare index in urban and rural regions in China is examined by employing principal component analysis. Empirical evidences reveal that unlike national wide or urban region, the increases of income contribute to improve social well-being in rural region, but not social welfare index. Accordingly, it can be said that although social well-being in rural region seems to be harmful because of weakly organized social welfare index, the potentiality exists to improve social well-being by increased income. Taken all together, the results signifies that the mixed economic system such as China might distribute its increased income appropriately, however, the distributional system is hardly operated to improve social welfare index. And thus the distributional system has to be amended to enhance social well-being in China.

Keywords

Social Welfare Index;Multivariate Analysis;Principal Component Analysis;Gini Coefficient;Inverted U-Shape

Acknowledgement

Supported by : 청주대학교

References

  1. S. Kuznets, "Economic Growth and Income Inequality," American Economic Review, Vol.45, No.1, pp.1-28, 1955.
  2. R. Ram, "Composite Indices of Physical Quality of Life, Basic Needs Fulfillment and Income: A Principal Component Representation," Journal of Development Economics, Vol.11, No.2, pp.227-247, 1982. https://doi.org/10.1016/0304-3878(82)90005-0
  3. 이현재, "주성분분석에 의한 IMD 및 WEF 국가경쟁력지수 평가," 국제지역연구, 제9권, 제2호, pp.339-354, 2005a.
  4. 이현재, "주성분분석에 의한 국가경쟁력지수 평가," 국제문화연구, 제23집, pp.95-109, 2005b.
  5. H. J. Rhee, "Effects of Health Care Expenditure on the Infant Mortality and Life Expectancy at Birth in Korea," International Journal of Contents, Vol.8, No.3, pp.52-56, 2012.
  6. E. Maasoumi, "The Measurement and Decomposition of Multi-Dimensional Inequality," Econometrica, Vol.54, No.4, pp.991-997, 1986. https://doi.org/10.2307/1912849
  7. P. Whiteley, "Public Opinion and the Demand for Social Welfare in Britain," Journal of Social Policy, Vol.10, No.4, pp.453-475, 1981. https://doi.org/10.1017/S0047279400001537
  8. D. E. Sahn and D. Stifel, "Exploring Alternative Measures of Welfare in the Absence of Expenditure Data," Review of Income and Wealth, Vol.49, No.4, pp.463-489, 2003. https://doi.org/10.1111/j.0034-6586.2003.00100.x
  9. Q. Wang, G. Shi, and Y. Zheng, "Changes in Income Inequality and Welfare Under Economic Transition: Evidence from Urban China," Applied Economics Letters, Vol.9, pp.989-991, 2002. https://doi.org/10.1080/13504850210148134
  10. H. Zhang, W. Chen, and J. Zhang, "Urban-Rural Income Disparities and Development in a Panel Data Set of China for the Period from 1978 to 2006," Applied Economics, Vol.44, No.21, pp.2717-2728, 2012. https://doi.org/10.1080/00036846.2011.566197
  11. X. Li and X. Qian, "Economic Analysis on the Urban-Rural Disparity in Human Capital in China," South African Journal of Economics, Vol.97, No.2, pp.146-160, 2011.
  12. H. Li and G. H. Chang, "Disparity in Health Resource Allocation Between Rural and Urban Areas in China: Is It Getting Worse?," Chinese Economy, Vol.41, No.6, pp.45-55, 2008. https://doi.org/10.2753/CES1097-1475410602
  13. 최준환, "중국의 경제성장과 인간개발지수," 중소연구, 제38권, 제3호, pp.157-190, 2014.
  14. 김진욱, "동북아 국가의 후생수준: ASEAN 국가와 비교를 중심으로," 동북아경제연구, 제23권, 제1호, pp.33-65, 2011.
  15. H. Hotelling, "Analysis of a Complex of Statistical Variables into Principal Components," Journal of Educational Psychology, Vol.24, No.6, pp.417-441, 1936.
  16. J. Johnston, Econometric Methods, 3rd. ed., McGraw-Hill, New York: NY, 1985.
  17. H. Theil, Principles of Econometrics, John Wiley & Sons, Inc., New York, NY, 1971.
  18. G. S. Maddala, Introduction to Econometrics, 3rd. ed., Wiley & Sons, Inc., New York, NY, 2001.
  19. 이현재, "보건의료비의 사회후생증대 효과 비교 분석: 주성분분석을 중심으로," 한국콘텐츠학회논문지, 제13권, 제2호, pp.378-389, 2013.
  20. www.worldbankgroup.org