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From Urban–Rural Division to Urban–Rural Integration: A Systematic Cost Explanation and Chengdu's Experience

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  • Qian Lu
  • Shurong Yao

Abstract

There is a considerable urban–rural divide in economic wellbeing in China. Since it was established as an urban–rural reform zone in 2007, Chengdu has seen significant reduction in the disparity in its urban and rural household incomes. From 2007 to 2010, Chengdu adopted urban–rural coordination policy by defining rural land property rights and establishing a rural land market. After 2010, Chengdu adopted an urban–rural integration strategy and allowed villager and business enterprises to participate in land consolidation. The transition from urban–rural division to urban–rural integration involves reducing systematic costs. The degree of urban–rural integration depends on the extent of the reduction in systematic costs.

Suggested Citation

  • Qian Lu & Shurong Yao, 2018. "From Urban–Rural Division to Urban–Rural Integration: A Systematic Cost Explanation and Chengdu's Experience," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 26(1), pages 86-105, January.
    • Handle: RePEc:bla:chinae:v:26:y:2018:i:1:p:86-105
    DOI: 10.1111/cwe.12230
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    References listed on IDEAS

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    1. Peng Jia & Yang Du & Meiyan Wang, 2017. "Rural Labor Migration and Poverty Reduction in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 25(6), pages 45-64, November.
    2. Cheung, Steven N S, 1998. "The Transaction Costs Paradigm: 1998 Presidential Address, Western Economic Association," Economic Inquiry, Western Economic Association International, vol. 36(4), pages 514-521, October.
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