Exports, FDI, Linkages and Regional Income Inequalities in China

Abstract

Pronounced disparities in income and economic opportunities between the coastal and inland regions of China are well documented in the literature. Factors responsible for these regional inequalities include preferential government policies, favourable geographical location, and superior infrastructure facilities in the coastal regions. Another factor contributing to the observed increase in regional disparities in China is insufficient linkages from growth engines. This chapter explores the proposition that regional disparities in China are related intimately to the structure of exports and foreign direct investment (FDI), which results in limited linkages emanating from growth engines.

A paper based on this chapter was published in the Journal of Comparative Economics: ‘Limited linkages from growth engines and regional disparities in China’, pages 148–64, copyright © 2004, with permission from Elsevier.