In twenty years of reform in China, the key development has been the opening-up of the market to foreign trade and international investment. This increased economic openness has been accompanied by profound changes in both economic organisation and regional disparity. This comprehensive book focuses on the link between these economic reforms and the causes – and ultimately the implications – of regional inequalities in the most populous country in the world.

The authors examine the effect of globalisation on regional disparities in terms of income, regional growth, industrial location, urban-rural opposition, performance of the firm, human capital and mortality. In each case they provide new insights into the main changes in the Chinese economy and give original explanations as to the sources of regional diversity. The authors find that on the whole, regional disparities in China have tended to increase since reforms were introduced. They illustrate that this rise of inequality, in terms of both growth and income, results from the aptitudes of different regions to seize the new opportunities afforded to them by market developments. They also demonstrate how current regional disparities and increased competition will go hand in hand with a polarisation of industrial development in a few privileged regions.

In the wake of China’s accession to the WTO, this timely book offers a unique perspective on what is surely one of the biggest economic issues the global economy will face in the coming years. China and its Regions will be essential reading for all students and scholars of business, industrial development and Asian studies.

Critical Acclaim

‘The contributors to this work are prominent scholars and researchers studying the Chinese economy. Their wide variety of educational experience brings a wealth of knowledge from international economies, including France, the US, Asia and Australia. This only adds to the international approach and depth of the study. . . . the book is very coherent. The chapters build upon one another and support the overall theme.’
– William M. Modrow, Business Information Alert

Contributors

Contributors: M. Audibert, J.F. Brun, F. Cai, N. Chen, J.L. Combes, P. Guillaumont, S. Guillaumont Jeanneney, P. Hua, O. Jammes, A. Kraay, S. Li, S. Li, Z, Li, J.Y. Lin, J. Mathonat, B. Naughton, S. Poncet, M.-F. Renard, W.T. Woo, Y. Wu, Q. Yang, F. Zai

Contents

Contents: Preface 1. On the Measurement of the Openness of the Chinese Economy 2. Social Consequences of Economic Reform in China: An Analysis of Regional Disparity in the Transition Period 3. Provincial Economic Growth in China: Causes and Consequences of Regional Differentiation 4. International Trade and Regional Specialization in China 5. Productivity Growth, Catch-up and Convergence in China’s Reforming Economy 6. The Impact of WTO Accession on Income Disparity in China 7. Changes in Income Inequality in China’s Transition 8. Infant Mortality and External Openness in Chinese Provinces 9. The Regional Distribution of Foreign Direct Investment in China: The Impact of Human Capital 10. Foreign Direct Investment, Human Capital and Catching Up: The Chinese Case 11. Some Observations on the Ownership and Regional Aspects in Financing the Growth of China’s Rural Enterprises 12. Exports and Economic Performance: Evidence from a Panel of Chinese Enterprises 13. Real Exchange Rate and Income Disparity between Urban and Rural Areas in China: A Theoretic and Econometric Analysis Index