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Linkages between China’s Regions

Measurement and Policy Nicolaas Groenewold, University of Western Australia, Anping Chen, Jinan University, China and Guoping Lee, Xi’an Jiaotong University, China
The rate of economic growth in China over the last 50 years has been remarkable. However this has only highlighted the inequalities between regions in China, making for considerable disquiet at the highest levels of Chinese policy-making. Not everyone has benefited from the same levels of prosperity and this book examines the many and varied policy solutions and proposals that have been applied to this thorny problem. The authors find that the industrial core of China (the South East and the Changjiang and Yellow River regions) is reasonably well integrated but not well connected to the remainder of the country. Indeed, evidence suggests that development in coastal areas comes at the expense of that in the interior while much of the policy designed to boost the interior actually flows to the coastal provinces.
Extent: 192 pp
Hardback Price: $127.00 Web: $114.30
Publication Date: 2008
ISBN: 978 1 84720 242 0
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  • Asian Studies
  • Asian Economics
  • Asian Geography
  • Economics and Finance
  • Asian Economics
  • Regional Economics
  • Urban and Regional Studies
  • Regional Economics
The rate of economic growth in China over the last 50 years has been remarkable. However this has only highlighted the inequalities between regions in China, making for considerable disquiet at the highest levels of Chinese policy-making. Not everyone has benefited from the same levels of prosperity and this book examines the many and varied policy solutions and proposals that have been applied to this thorny problem. The authors find that the industrial core of China (the South East and the Changjiang and Yellow River regions) is reasonably well integrated but not well connected to the remainder of the country. Indeed, evidence suggests that development in coastal areas comes at the expense of that in the interior while much of the policy designed to boost the interior actually flows to the coastal provinces.

This original analysis of the linkages between regions in China, and regional policy since 1949, will prove an invaluable and illuminating account to a wide readership. This will include academics and researchers of Chinese studies and regional economics as well as policy-makers in the region.
‘The Chinese economy is far too huge and spatially complicated and diversified to be misinterpreted. The only feasible approach to analyzing it is, therefore, to divide it into smaller geographical elements through which one can have a better insight into the spatial mechanisms and regional characteristics. This book provides a quantitative examination of China’s inter-regional economic linkages. It is an excellent step forward towards a better understanding of, and indeed an important methodological contribution to, the spatial growth of the Chinese economy. I think it is a must-read for scholars and policy-makers who care about China’s regional economic issues, especially in the context of Chinese inter-regional economic linkages.’
– Rongxing Guo, The Regional Science Association of China, Beijing

‘National data for the performance of China’s economy are inherently misleading. China remains a series of only partially integrated regional economies. A long-held assumption has been that if the coastal areas grow first, this will encourage growth in the more inland and less developed regions in their wake. Almost no research has been undertaken to investigate the economic relationships among these regions. Groenewold, Chen and Lee not only explicate these relationships, in the process they highlight the need for direct government intervention in order to ensure the growth of the interior, especially the most western regions.’
– David S.G. Goodman, University of Technology, Sydney, Australia
Contents: Preface 1. Introduction 2. China’s Regions and Regional Disparities, 1953 to 2005 3. Regional Policy in China, 1953 to 2005 4. Literature Survey 5. An Analysis of Spillovers: A Three-Region Model 6. An Exploration of the Sensitivity of the Three-Region Results 7. Spillovers in a Model with Six Regions 8. Spillovers of Policy Shocks in China 9. Conclusions References Index