Regional patterns of industrial development during China’s economic transition

Jane Golley

The Economics of Transition, 2002, vol. 10, issue 3, 761-801

Abstract: This paper pinpoints ‘circular and cumulative causation’ as the fundamental mechanism driving the observed trend of uneven industrial development in the Chinese economy. A shift–share analysis of manufacturing performance at the provincial level identifies five provinces in South–east China — Guangdong, Fujian, Zhejiang, Jiangsu and Shandong — as the main beneficiaries of this cumulative process during China’s transition period. A descriptive analysis identifies some of the specific transitional factors and policy choices that have compounded the natural tendency towards regional inequality in China’s industrializing economy. JEL classification: R12, O53, P20.

Date: 2002
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