摘要：Huge gaps exist and are widening between the rural and urban income and consumption across 32 provinces of China despite very impressive rates of growth of GDP in the last three decades. By pursuing rapid urbanisation and export oriented strategies Chinese policy makers seem to have switched away from the equality oriented linear model of optimal consumption to urban biased inequality tolerating non-linear model of consumption since 1978. Inequality problem will worsen further unless export oriented growth strategies are accompanied by domestic consumption based growth policies.
