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Opening Up and Unbalanced Development in the Chinese Regions: Theoretical Thinking and Some Empirical Evidence

  • Yanqing Jiang
Chapter

Abstract

This chapter contains a theoretical study of opening up, followed by empirical discussions of the unbalanced development of the Chinese regions. Applying an inframarginal methodology, we build a theoretical model based on the concepts of comparative advantage and transaction efficiency to explain opening up and inequality in developing economies. Our model and accompanying empirical evidence imply that an increase in domestic transaction efficiency reduces inequality within a developing economy while an increase in international transaction efficiency enhances the overall welfare level in a developing economy. These and other results have important implications for China in its policy making.

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Copyright information

© The Author(s) 2017

Authors and Affiliations

  • Yanqing Jiang
    • 1
  1. 1.Shanghai International Studies UniversityShanghaiChina

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