Trade Liberalization, Economic Restructuring and Urban Poverty: The Case of China *

Zhicheng Liang

Asian Economic Journal, 2007, vol. 21, issue 3, pages 239-259

Abstract: Increased trade openness and rapid market-oriented transformation have largely altered the patterns of wealth accumulation and wealth distribution in post-reform China. In the present paper, with the help of Chinese provincial level data over the period of 1986 to 2000, simultaneous equations estimation and generalized method of moment techniques are applied to investigate the relationship between trade and poverty in urban China. Empirical results suggest that China's trade liberalization helps to reduce urban poverty both directly and indirectly through its favorable impacts on economic growth. Copyright 2007 The Author
Journal compilation 2007 East Asian Economic Association and Blackwell Publishing Ltd. .

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