Trade-cum-FDI, Human Capital Inequality and the Dual Economy in China

Xiaolan Fu

Chapter 8 in Exports, Foreign Direct Investment and Economic Development in China, 2004, pp 146-165 from Palgrave Macmillan

Abstract: Abstract Increasing income inequalities between the coastal and the inland regions in China is a topic that has attracted considerable concern in recent years. Received explanations include preferential government policies in the coastal regions, favourable geographical location and superior infrastructure facilities in the coastal regions. This chapter explores the causes of regional disparity in the light of the celebrated Singer Hypotheses. The analysis of increasing inequalities between the coastal and the inland regions in China can be anchored in Singer’s hypotheses of dualism for several reasons. First, several features of China’s foreign trade and FDI are of the trade-cum-FDI type that Singer (1950, 1975) analyses. Second, the economic relationship between the coastal and the inland regions of China is of the classic centre-periphery type that Singer expounds in the context of developing and developed countries.

Keywords: Human Capital; Income Inequality; Coastal Region; Foreign Firm; Economic Relationship (search for similar items in EconPapers)
Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-51483-6_8

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DOI: 10.1057/9780230514836_8

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