Regional Patterns of Industrial Development during China's Economic Transition

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. Show more