Abstract:
This paper examines the patterns of spatial distribution of basic pension in China using exploratory spatial analysis. Then, it explores the determinants of basic pension growth and their relative importance with spatial Durbin model, and decomposes their spatial effects with three spatial weights. The study finds that the high value areas of basic pension mainly concentrate in the northwest and eastern coastal areas; the northeast, the central and southern areas belong to low value areas. The spatial pattern of basic pension reflects the real gap of social insurance for the aged among regions and there is a long-term stable tendency. The spatial spillover effect exists significantly and is mainly affected by economic factors but not demographic factors. The level of basic pension insurance to plan as a whole is low in China, which makes it difficult to transfer across the regions. That leads to obvious regional gap and seriously hinders the basic old-age insurance payment matched with free movement of labor. Therefore, from the overall and long-term interests, it is the only way to change regional segmentation into national pooling for deepening reforms of pension insurance system in China.