Shen, Ling - In: Journal of Developing Areas 43 (2009) 1, pp. 87-107
strengthened by the household registration (Hukou) system in China. Chinese economy, as well as its income inequality, rose … dramatically in last decades. Most researches show that urban-rural disparity is an important source of income inequality. In this … paper we study the impact of this disparity on innovation through the demand for quality goods. For simplicity, we assume …