Infrastructure As Economic Density
AbstractIncome disparities are rising in China as a consequence of the economic reforms post 1979 which virtually gave unchallenged economic growth and prosperity to the coastal regions whose economic growth increased over the last 30 years at the expense of the interior hinterland. Institutions in China have seen the answer to restoring a rural-urban income balance by redistributing people from the interior regions of China to the prosperous coastal regions. This can be seen as a supply side reaction to the income disparity problem, which will inevitably impose the kinds of social costs, which concentrations of populations normally bring. This paper offers insights into other methods of transforming the urban-rural income disparity problem in China, the economic implications of infrastructure investment, the relevance of Krugmans â€˜New Economic Geographyâ€™ to the transformative Economics which China has experienced over the last 30 years; and the close relationship between how Krugmanâ€™s agglomeration economies arise and the development of SEZâ€™s and HTDZâ€™s in China.
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Bibliographic InfoPaper provided by Department of Economics, SOAS, University of London, UK in its series Working Papers with number 154.
Length: 27 pages
Date of creation: Dec 2007
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