hinese per

This paper explores the regional per capita income distribution in China between 1992 and 2007. The spatial dependence present in the raw data is removed using a filtering technique. A non‐parametric approach is applied to the filtered data to show that regional inequalities have been roughly stable, the distribution shape has changed very little and mobility within the distribution has been relatively low. Finally, the paper investigates the impact of various economic and social factors on the evolution of regional income distribution. Primary sector employment, physical capital, trade openness and foreign direct investment are all found to be key determinants of regional income distribution.