Abstract Based on the comprehensive evaluation of the provincial investment environment for the period 1992-2006 in China, the spatial disparity of the investment environment is measured and decomposed by employing a generalized entropy index, MLD. The result shows, the regional disparity or inequality of the investment environment in China is very obvious, whose main source is from the intra-regions. However, temporally, either the interregional or the intraregional disparity decreases gradually as a whole. The dynamic decomposition of MLD index shows that the change of the intraregional disparity is the dominant factor to cut down the whole regional disparity, but the interregional disparity also is an important force to lessen the whole regional disparity and has a trend to increase. The economic growth is a factor to increase the whole regional disparity but its effect is very limited. The findings above have important policy implications to perfect the regional investment environment in Ch
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Received: 16 August 2008
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Corresponding Authors:
WEN Yu-yuan
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