How Have China’s Intra- and Inter-Regional Input-Output Linkages Changed during Reform?

Shiro Hioki and Nobuhiro Okamoto
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Shiro Hioki: Tohoku University
Nobuhiro Okamoto: Daito Bunka University

Chapter 7 in Resurgent China, 2009, pp 181-212 from Palgrave Macmillan

Abstract: Abstract The Chinese central government has tried to establish the internal division of labor between regions based on their comparative advantages and to deepen the economic interdependency among them. For instance, during the nineth Five Year Plan period, China launched the construction of seven major economic regions. By enhancing various kinds of inter-regional economic cooperation within each area, they tried to accelerate the economic integration of regions. In addition, they also aimed at building rational economic relationships between the areas based on comparative advantages of each area (Fan and Lu, 2001). Subsequently, since the beginning of the Western Development Program, large amounts of investments have been directed to the construction of infrastructures in interior areas. This program is expected to greatly enhance China’s inter-regional economic linkages (Huang and Wei, 2001). We can find out from these examples that attaining spatially more integrated market economy and establishing spatial division of labor based on regional comparative advantages have been important policy objectives of the Chinese authorities.

Keywords: Outgoing Linkage; Output Multiplier; China Economic Review; Input Multiplier; Leontief Inverse Matrix (search for similar items in EconPapers)
Date: 2009
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DOI: 10.1057/9780230234253_7

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