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.
|Journal||Economics of Transition|
|Publication status||Published - 2002|