The Regional Inequality in China: Methods of Decomposition and Empirical Analysis

Based on the inductive explanation of indicators and research methods related to regional inequality,the situation of regional inequity in China since the middle and latter period of 1980s is investigated by using the Theil index,and the income gaps between rural and urban,between east,central and west are decomposed.The results show that the income gaps between rural and urban,between east,central and west are main factors leading to regional inequality.