Economic Development and the Rural-Urban Divide in China

KNIGHT John

doi:10.18999/ecos.55.3.5

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Description

The paper examines a remarkable phenomenon. There is in China a large divide between rural and urban areas, not only in terms of income but also in terms of various services such as health care and education. How did it come about? How has it been maintained in the face of economic reform and marketisation? What are its implications for equity and for efficiency? Will the rural-urban divide be eroded? In this paper I will discuss the above issues. Meanwhile, the paper goes on to consider the Chinese case in perspective, both theoretical and empirical. China is not alone in having a rural-urban divide – it appears to be a widespread phenomenon in the process of economic development, commented on even by Adam Smith in The Wealth of Nations, 1776. However, China is exceptional in the size and the sharpness of its divide.

Journal

経済科学

経済科学 55 (3), 5-27, 2007-12-25

名古屋大学大学院経済学研究科