 China's Regional Disparity and Its Policy ResponsesMinjia Chen and Yongnian Zheng China & World Economy, 2008, vol. 16, issue 4, 16-32 Abstract: The fruits of China's rapid economic development over the 3 decades have not been distributed fairly across different regions. Using data from a sample of 815 Chinese listed firms during 1998—2004, our error‐correction investment model showes evidence of different financial constraints on firms' investment in different regions. We argue that China's regional development policies have contributed greatly to the regional inequalities. To control the rising inequality, China has shifted its focus from the coast to the interior regions. However, it is becoming increasingly difficult for the government to direct the economy, as market mechanisms now have a far greater influence on the economy than the government does. The people‐centered approach of the current leadership has meant that substantial attention has been placed on regional development disparities in an attempt to build a “harmonious society.” China needs further extensive reforms if all the measures for reducing regional disparity are to be effective. Date: 2008 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:chinae:v:16:y:2008:i:4:p:16-32 Ordering information: This journal article can be ordered from Access Statistics for this article China & World Economy is currently edited by Yongding Yu More articles in China & World Economy from Institute of World Economics and Politics, Chinese Academy of Social Sciences Contact information at EDIRC. |
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