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observed in China’s Tourism industry over the recent years in contrast to divergence in the
general economy (Wen, 2001). However more specific evaluations and comparisons are needed
to analyze the relationship between foreign exchange earnings by international tourists, number
of international tourists, and other tourism related indicators.
One way to capture the essence of the economic distribution is by using the Gini
coefficient. The Gini coefficient, as proposed by Gini in 1912 in French, was developed to
measure the degree of concentration (inequality) of a variable in a distribution of its elements. It
compares the Lorenz curve of a ranked empirical distribution with the line of perfect equality.
This line assumes that each element has the same contribution to the total summation of the
values of a variable. The Gini coefficient ranges between 0 (where there is no concentration and
implies perfect equality) and 1 (where there is total concentration and implies perfect inequality).
The greater the degree of inequality, the larger is the Gini coefficient.
The Gini coefficient can be used to measure the degree of inequality among thirty-one
Provinces given different indicators associated with the international tourists in China. The
degrees of the concentration for various tourism indicators can be measured and compared
between thirty-one Provinces, such as foreign exchange earning, number of tourists, and number
of hotels. In order to define mathematically the Lorenz curve and Gini coefficient, the
formulation of elements can be either discrete or continuous. The discrete form was chosen for
this study, and the distribution of international tourism across the thirty-one Provinces could be
represented as
where y represents the tourism indicators (the number of international tourists, the foreign
exchange earning, and the number of hotels) and N equals 31 (the number of the Provinces in
y ≤ y ≤ y ≤ ... ≤ yN 1 2 3
13observed in China’s Tourism industry over the recent years in contrast to divergence in thegeneral economy (Wen, 2001). However more specific evaluations and comparisons are neededto analyze the relationship between foreign exchange earnings by international tourists, numberof international tourists, and other tourism related indicators.One way to capture the essence of the economic distribution is by using the Ginicoefficient. The Gini coefficient, as proposed by Gini in 1912 in French, was developed tomeasure the degree of concentration (inequality) of a variable in a distribution of its elements. Itcompares the Lorenz curve of a ranked empirical distribution with the line of perfect equality.This line assumes that each element has the same contribution to the total summation of thevalues of a variable. The Gini coefficient ranges between 0 (where there is no concentration andimplies perfect equality) and 1 (where there is total concentration and implies perfect inequality).The greater the degree of inequality, the larger is the Gini coefficient.The Gini coefficient can be used to measure the degree of inequality among thirty-oneProvinces given different indicators associated with the international tourists in China. Thedegrees of the concentration for various tourism indicators can be measured and comparedbetween thirty-one Provinces, such as foreign exchange earning, number of tourists, and numberof hotels. In order to define mathematically the Lorenz curve and Gini coefficient, theformulation of elements can be either discrete or continuous. The discrete form was chosen forthis study, and the distribution of international tourism across the thirty-one Provinces could berepresented aswhere y represents the tourism indicators (the number of international tourists, the foreignexchange earning, and the number of hotels) and N equals 31 (the number of the Provinces iny ≤ y ≤ y ≤ ... ≤ yN 1 2 3
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