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China's Western Development Strategy and Nature versus Nurture

Author

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  • Jane Golley

Abstract

The current trend of rising inequalities in industrial development between East and West China has resulted from a combination of nature and nurture. Given the natural tendency for firms to agglomerate in a developing, market economy, and the numerous geographical and historical factors that have long favoured the Eastern region, it is hardly surprising that this is where Chinese industry has become increasingly agglomerated in recent decades. It is even less surprising in light of deliberate policy choices that compounded, or nurtured, this natural tendency. Left to market forces alone, the agglomeration process should reverse itself (to some extent) in the (very) long-run, as firms relocate to provinces with relatively low costs of production. However, that theoretical long-run is too far away for the Chinese central government, which has introduced a 'Western Development Strategy' to try and speed up economic development in China's poorest region. This paper assesses the likelihood that this Strategy in its current guise will succeed in promoting industrial development in the West.

Suggested Citation

  • Jane Golley, 2007. "China's Western Development Strategy and Nature versus Nurture," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 5(2), pages 115-129.
  • Handle: RePEc:taf:jocebs:v:5:y:2007:i:2:p:115-129
    DOI: 10.1080/14765280701362380
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    Citations

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    Cited by:

    1. Zheng Lu & Xiang Deng, 2013. "Regional Policy And Regional Development: A Case Study Of China'S Western Development Strategy," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(15), pages 1-21.
    2. Lu, Zheng & Deng, Xiang, 2011. "China's Western Development Strategy: Policies, Effects and Prospects," MPRA Paper 35201, University Library of Munich, Germany.
    3. Cheong, Tsun Se & Wu, Yanrui, 2014. "The impacts of structural transformation and industrial upgrading on regional inequality in China," China Economic Review, Elsevier, vol. 31(C), pages 339-350.
    4. Cheong, Tsun Se & Wu, Yanrui, 2018. "Convergence and transitional dynamics of China's industrial output: A county-level study using a new framework of distribution dynamics analysis," China Economic Review, Elsevier, vol. 48(C), pages 125-138.
    5. Zhikuo Liu & Huihang Wu & Jianfeng Wu, 2019. "Location-based tax incentives and entrepreneurial activities: evidence from Western Regional Development Strategy in China," Small Business Economics, Springer, vol. 52(3), pages 729-742, March.
    6. Shenggen Fan & Ravi Kanbur & Shang-Jin Wei & Xiaobo Zhang, 2013. "The Economics of China: Successes and Challenges," NBER Working Papers 19648, National Bureau of Economic Research, Inc.
    7. Qiang Li & Jason F. Kovacs & Geun Hee Choi, 2021. "High-technology employment growth in China: geographic disparities in economic structure and sectoral performance," Economic Change and Restructuring, Springer, vol. 54(4), pages 1025-1064, November.
    8. Junwei Shi & Haiyan Fu, 2017. "Has The Industrial Structure Of Western Provinces In China Been Differential? Evidence From The Sip Framework," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(04), pages 905-928, September.
    9. Hien Thanh Hoang & Linh T. D. Huynh & George Chen, 2019. "How New Economic Geography Explains Provincial Wage Disparities: Generalised Methods Of Moments Approach," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 205-215.

    More about this item

    Keywords

    JEL Classifications: O14; O18; O25; O53; R58; R11;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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