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Hukou and highways the impact of China's spatial development policies on urbanization and regional inequality

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  • Bosker, Maarten
  • Deichmann, Uwe
  • Roberts, Mark

Abstract

This paper examines the spatial economic impact of China's two main spatial development policies: restricted labor mobility through the Hukou residential registration system, and the construction of a 96,000 km national expressway network (NEN). Using a structural new economic geography approach, we find that these policies have shaped regional economic development and urbanization patterns across China in very different ways. The construction of the NEN has reinforced China's existing core-periphery patterns: initially lagging regions not connected to the NEN have not benefitted much from its construction. By contrast, a removal of the Hukou restrictions is predicted to result in much more widespread welfare gains, allowing all people to benefit by moving to where they are most productive. Interestingly, it would even promote urbanization in currently lagging (inland) regions, mostly by stimulating rural outmigration.

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  • 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.
    • Handle: RePEc:eee:regeco:v:71:y:2018:i:c:p:91-109
    DOI: 10.1016/j.regsciurbeco.2018.05.007
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    4. Feng, Qiyun & Chen, Zhenhua & Cheng, Chuanchao & Chang, Haiqing, 2023. "Impact of high-speed rail on high-skilled labor mobility in China," Transport Policy, Elsevier, vol. 133(C), pages 64-74.
    5. Yanxu Li & Zhenfa Xie & Bo Li & Muhammad Mohiuddin, 2022. "The Impacts of In Situ Urbanization on Housing, Mobility and Employment of Local Residents in China," Sustainability, MDPI, vol. 14(15), pages 1-21, July.
    6. Selod, Harris & Shilpi, Forhad, 2021. "Rural-urban migration in developing countries: Lessons from the literature," Regional Science and Urban Economics, Elsevier, vol. 91(C).
    7. Roberts,Mark & Melecky,Martin & Bougna,Theophile & Xu,Yan-000462055, 2018. "Transport corridors and their wider economic benefits : a critical review of the literature," Policy Research Working Paper Series 8302, The World Bank.
    8. He, Guojun & Xie, Yang & Zhang, Bing, 2020. "Expressways, GDP, and the environment: The case of China," Journal of Development Economics, Elsevier, vol. 145(C).
    9. Xu, Yang & Yang, Xi, 2021. "Access to ports and the welfare gains from domestic transportation infrastructure," Journal of Urban Economics, Elsevier, vol. 126(C).
    10. Zhang, Xueliang & Hu, Yuqi & Lin, Yongran, 2020. "The influence of highway on local economy: Evidence from China's Yangtze River Delta region," Journal of Transport Geography, Elsevier, vol. 82(C).
    11. Euijune Kim & Min Jiang & Byula Kim, 2022. "Analyzing impacts of Vietnam’s North–South highway on creation of regional cluster," Asia-Pacific Journal of Regional Science, Springer, vol. 6(2), pages 617-633, June.
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    14. Ivan A. Antipin & Natalya Yu. Vlasova & Olga Yu. Ivanova, 2020. "Strategic priorities for managing spatial inequalities in the socio-economic development of the Russian regions," Upravlenets, Ural State University of Economics, vol. 11(6), pages 29-43, December.

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    More about this item

    Keywords

    China; Infrastructure investments; Highways; Migration; Economic geography;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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