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Cumulative Causation and Inequality Among Villages in China

John Knight and L. Shi

Economics Series Working Papers from University of Oxford, Department of Economics

Abstract: We have posed an interesting and possibly original question: Why are Chinese villages that are so close together geographically so far apart economically? We have developed an answer in terms of factor immobiblities and processes of cumulative causation. Our results are not conclusive: Sharper tests would require a closer analysis of each village economy over time. Nevertheless, the evidence is suggestive.

Keywords: RURAL ECONOMY; INCOME (search for similar items in EconPapers)
JEL-codes: O10 O18 R51 (search for similar items in EconPapers)
Date: 1996
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