[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/regeco/v42y2012i1p126-134.html
   My bibliography  Save this article

Urbanization and/or rural industrialization in China

Author

Listed:
  • Song, Huasheng
  • Thisse, Jacques-François
  • Zhu, Xiwei
Abstract
We study urbanization and rural industrialization in a setting involving one urban region (U) and one rural region (R). Farmers are heterogeneous in their attitude toward migration, while firms' efficiency is higher in U than in R because agglomeration economies have been built in U. Farmers face three options: (i) working in the agricultural sector, (ii) setting up firms in R, or (iii) moving to U. There exists a unique equilibrium, which displays four different patterns. In the first one, both urbanization and rural industrialization occur simultaneously. In the second and third patterns, either urbanization or rural industrialization arises, whereas the last pattern involves an industrial core and an agricultural periphery. The conditions under which each pattern emerges are determined. The transfer of labor from the agricultural to the industrial sector always increases farmers' welfare, while the welfare impact on incumbent urban workers is ambiguous.

Suggested Citation

  • Song, Huasheng & Thisse, Jacques-François & Zhu, Xiwei, 2012. "Urbanization and/or rural industrialization in China," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 126-134.
    • Handle: RePEc:eee:regeco:v:42:y:2012:i:1:p:126-134
    DOI: 10.1016/j.regsciurbeco.2011.08.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166046211000974
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.regsciurbeco.2011.08.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kung, James Kai-sing & Lin, Yi-min, 2007. "The Decline of Township-and-Village Enterprises in China's Economic Transition," World Development, Elsevier, vol. 35(4), pages 569-584, April.
    2. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    3. Au, Chun-Chung & Henderson, J. Vernon, 2006. "How migration restrictions limit agglomeration and productivity in China," Journal of Development Economics, Elsevier, vol. 80(2), pages 350-388, August.
    4. Putterman, Louis, 1997. "On the past and future of china's township and village-owned enterprises," World Development, Elsevier, vol. 25(10), pages 1639-1655, October.
    5. Zai Liang & Zhongdong Ma, 2004. "China's Floating Population: New Evidence from the 2000 Census," Population and Development Review, The Population Council, Inc., vol. 30(3), pages 467-488, September.
    6. Whalley, John & Zhang, Shunming, 2007. "A numerical simulation analysis of (Hukou) labour mobility restrictions in China," Journal of Development Economics, Elsevier, vol. 83(2), pages 392-410, July.
    7. Sandra Poncet, 2005. "A Fragmented China: Measure and Determinants of Chinese Domestic Market Disintegration," Review of International Economics, Wiley Blackwell, vol. 13(3), pages 409-430, August.
    8. Tabuchi, Takatoshi & Thisse, Jacques-Francois, 2002. "Taste heterogeneity, labor mobility and economic geography," Journal of Development Economics, Elsevier, vol. 69(1), pages 155-177, October.
    9. Terry Sicular & Yue Ximing & Björn Gustafsson & Li Shi, 2007. "The Urban–Rural Income Gap And Inequality In China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(1), pages 93-126, March.
    10. Chun-Chung Au & J. Vernon Henderson, 2006. "Are Chinese Cities Too Small?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 73(3), pages 549-576.
    11. Poncet, Sandra, 2006. "Provincial migration dynamics in China: Borders, costs and economic motivations," Regional Science and Urban Economics, Elsevier, vol. 36(3), pages 385-398, May.
    12. Hu, Dapeng, 2002. "Trade, rural-urban migration, and regional income disparity in developing countries: a spatial general equilibrium model inspired by the case of China," Regional Science and Urban Economics, Elsevier, vol. 32(3), pages 311-338, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fabien Candau & Elisa Dienesch, 2013. "Does Globalization explain Urbanization in the World and in Asia?," Working Papers hal-01847940, HAL.
    2. Yun Luo & Pengcheng Xiang & Yiming Wang, 2020. "Investigate the Relationship between Urbanization and Industrialization using a Coordination Model: A Case Study of China," Sustainability, MDPI, vol. 12(3), pages 1-17, January.
    3. Shulin Lan & Ming-Lang Tseng, 2018. "Coordinated Development of Metropolitan Logistics and Economy Toward Sustainability," Computational Economics, Springer;Society for Computational Economics, vol. 52(4), pages 1113-1138, December.
    4. Chen, Na & Yang, Huan, 2024. "From rural to urban: Clan, urbanization and trust," China Economic Review, Elsevier, vol. 85(C).
    5. Jiangsheng Chen & Caixian Cui, 2018. "Large City or Small Town: an Empirical Analysis of the Effects of Migration Strategies of Rural Households on Income in China," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 13(1), pages 211-228, March.
    6. Zhu, Fengkai & Zhang, Fengrong & Ke, Xinli, 2018. "Rural industrial restructuring in China’s metropolitan suburbs: Evidence from the land use transition of rural enterprises in suburban Beijing," Land Use Policy, Elsevier, vol. 74(C), pages 121-129.
    7. Shao, Xiaokuai & White, Alexander, 2021. "Outsiders, insiders and interventions in the housing market," Journal of Comparative Economics, Elsevier, vol. 49(1), pages 110-134.
    8. Zhao, Qianyu & Zhang, Zhanlu, 2017. "Does China’s ‘increasing versus decreasing balance’ land-restructuring policy restructure rural life? Evidence from Dongfan Village, Shaanxi Province," Land Use Policy, Elsevier, vol. 68(C), pages 649-659.
    9. Göçoğlu, Volkan & Göksu, Serkan, 2024. "How do industrialization and agricultural land use affect urban population in Turkey? Policy implications in the context of SDGs," Journal of Policy Modeling, Elsevier, vol. 46(1), pages 198-211.
    10. Fatma Nesrin DabakoÄŸlu, 2015. "Examining the Impact of Pre-School Education on Self-Concept," European Journal of Social Sciences Education and Research Articles, Revistia Research and Publishing, vol. 2, ejser_v2_.
    11. Takatoshi Tabuchi & Jacques†François Thisse & Xiwei Zhu, 2018. "Does Technological Progress Magnify Regional Disparities?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(2), pages 647-663, May.
    12. Marian Rizov & Xufei Zhang, 2014. "Regional disparities and productivity in China: Evidence from manufacturing micro data," Papers in Regional Science, Wiley Blackwell, vol. 93(2), pages 321-339, June.
    13. Chuanwang Sun & Xiaochun Meng & Shuijun Peng, 2017. "Effects of Waste-to-Energy Plants on China’s Urbanization: Evidence from a Hedonic Price Analysis in Shenzhen," Sustainability, MDPI, vol. 9(3), pages 1-18, March.
    14. Fabien Candau & Elisa Dienesch, 2013. "Does Globalization explain Urbanization in the World and in Asia?," Working papers of CATT hal-01847940, HAL.
    15. Heshmati, Almas & Koohborfardhaghighi, Somayeh & Summers, Christopher R., 2022. "Integration of Technological and Social Components in a Smart Urban Development Model: A Case Study of China," IZA Discussion Papers 15211, Institute of Labor Economics (IZA).
    16. Getachew Jenber Feleke, 2022. "Industrialization Lessons to Africa and Other Developing Economies," International Journal of Science and Business, IJSAB International, vol. 16(1), pages 232-241.
    17. Sheng Zhang & Ge Li & Ran Yu & Yuanhua Chang & Yifu Yang & Qihao Zhang & Weining Liu & Jiming Hao, 2024. "Understanding the shortboard of regional sustainable development: fairness and efficiency of rural public resource allocation in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 16739-16756, July.
    18. David W. H. Wong & Harry F. Lee & Simon X. B. Zhao & Andy C. L. Tai, 2022. "Post-2008 Fiscal Stimulus Packages and the Driving Forces for China’s Urbanization," Land, MDPI, vol. 11(12), pages 1-16, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bosker, Maarten & Brakman, Steven & Garretsen, Harry & Schramm, Marc, 2012. "Relaxing Hukou: Increased labor mobility and China’s economic geography," Journal of Urban Economics, Elsevier, vol. 72(2), pages 252-266.
    2. Yunqiang Liu & Jiuping Xu & Huawei Luo, 2014. "An Integrated Approach to Modelling the Economy-Society-Ecology System in Urbanization Process," Sustainability, MDPI, vol. 6(4), pages 1-27, April.
    3. Vendryes, Thomas, 2011. "Migration constraints and development: Hukou and capital accumulation in China," China Economic Review, Elsevier, vol. 22(4), pages 669-692.
    4. Ye, Longfeng & Robertson, Peter E., 2019. "Hitting the Great Wall: Structural change and China's growth slowdown," China Economic Review, Elsevier, vol. 56(C), pages 1-1.
    5. Chen, Anping & Groenewold, Nicolaas, 2010. "Reducing regional disparities in China: An evaluation of alternative policies," Journal of Comparative Economics, Elsevier, vol. 38(2), pages 189-198, June.
    6. Bosker, Maarten & Deichmann, Uwe & Roberts, Mark, 2018. "Hukou and highways the impact of China's spatial development policies on urbanization and regional inequality," Regional Science and Urban Economics, Elsevier, vol. 71(C), pages 91-109.
    7. Iris Claus & Les Oxley & Ming Lu & Guanghua Wan, 2014. "Urbanization And Urban Systems In The People'S Republic Of China: Research Findings And Policy Recommendations," Journal of Economic Surveys, Wiley Blackwell, vol. 28(4), pages 671-685, September.
    8. Deng, Zhongqi & Qin, Ming & Song, Shunfeng, 2020. "Re-study on Chinese city size and policy formation," China Economic Review, Elsevier, vol. 60(C).
    9. Su, Yaqin & Tesfazion, Petros & Zhao, Zhong, 2018. "Where are the migrants from? Inter- vs. intra-provincial rural-urban migration in China," China Economic Review, Elsevier, vol. 47(C), pages 142-155.
    10. Mark Colas & Suqin Ge, 2019. "Transformations in China’s Internal Labor Migration and Hukou System," Journal of Labor Research, Springer, vol. 40(3), pages 296-331, September.
    11. Deininger, Klaus & Jin, Songqing & Xia, Fang & Huang, Jikun, 2014. "Moving Off the Farm: Land Institutions to Facilitate Structural Transformation and Agricultural Productivity Growth in China," World Development, Elsevier, vol. 59(C), pages 505-520.
    12. Ho, Chun-Yu & Ho, Wai-Yip Alex & Li, Dan, 2015. "Intranational risk sharing and its determinants," Journal of International Money and Finance, Elsevier, vol. 51(C), pages 89-113.
    13. Selod, Harris & Shilpi, Forhad, 2021. "Rural-urban migration in developing countries: Lessons from the literature," Regional Science and Urban Economics, Elsevier, vol. 91(C).
    14. Anping Chen & Nicolaas Groenewold, 2011. "Regional Equality and National Development in China: Is There a Trade‐Off?," Growth and Change, Wiley Blackwell, vol. 42(4), pages 628-669, December.
    15. Wei Tang & Geoffrey J.D. Hewings, 2017. "Do city–county mergers in China promote local economic development?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 25(3), pages 439-469, July.
    16. Meng, Lei, 2020. "Permanent migration desire of Chinese rural residents: Evidence from field surveys, 2006–2015," China Economic Review, Elsevier, vol. 61(C).
    17. Ying Ge & Yingxia Pu & Mengdi Sun, 2021. "Alternative measure of border effects across regions: Ripley's K‐function method," Papers in Regional Science, Wiley Blackwell, vol. 100(1), pages 287-302, February.
    18. Shuming Bao & Örn B. Bodvarsson & Jack W. Hou & Yaohui Zhao, 2011. "The Regulation Of Migration In A Transition Economy: China'S Hukou System," Contemporary Economic Policy, Western Economic Association International, vol. 29(4), pages 564-579, October.
    19. Jeffrey S. Zax & Yin He, 2016. "The Law Of One Price In Chinese Factor Markets," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-31, September.
    20. Poncet, Sandra, 2006. "Provincial migration dynamics in China: Borders, costs and economic motivations," Regional Science and Urban Economics, Elsevier, vol. 36(3), pages 385-398, May.

    More about this item

    Keywords

    Urbanization; Rural industrialization; New economic geography;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:regeco:v:42:y:2012:i:1:p:126-134. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/regec .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.