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Urbanization and/or rural industrialization in China

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  • SONG, Huasheng
  • THISSE, Jacques-François
  • ZHU, Xiwei

Abstract

We study urbanization and rural industrialization in a setting involving one urban region (U) and one rural region (R). Farmers are heterogeneous in their attitude toward migration, while firms' efficiency is higher in U than in R because agglomeration economies have been built in U. Farmers face three options: (i) working in the agricultural sector, (ii) setting up firms in R, or (iii) moving to U. There exists a unique equilibrium, which displays four different patterns. In the first one, both urbanization and rural industrialization occur simultaneously. In the second and third patterns, either urbanization or rural industrialization arises, whereas the last pattern involves an industrial core and an agricultural periphery. The conditions under which each pattern emerges are determined. The transfer of labor from the agricultural to the industrial sector always increases farmers' welfare, while the welfare impact on incumbent urban workers is ambiguous.
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Suggested Citation

  • SONG, Huasheng & THISSE, Jacques-François & ZHU, Xiwei, 2011. "Urbanization and/or rural industrialization in China," LIDAM Reprints CORE 2338, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:2338
    DOI: 10.1016/j.regsciurbeco.2011.08.003
    Note: In : Regional Science and Urban Economics, 42(1-2), 126-134, 2011
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    Cited by:

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    2. Yun Luo & Pengcheng Xiang & Yiming Wang, 2020. "Investigate the Relationship between Urbanization and Industrialization using a Coordination Model: A Case Study of China," Sustainability, MDPI, vol. 12(3), pages 1-17, January.
    3. Shao, Xiaokuai & White, Alexander, 2021. "Outsiders, insiders and interventions in the housing market," Journal of Comparative Economics, Elsevier, vol. 49(1), pages 110-134.
    4. Shulin Lan & Ming-Lang Tseng, 2018. "Coordinated Development of Metropolitan Logistics and Economy Toward Sustainability," Computational Economics, Springer;Society for Computational Economics, vol. 52(4), pages 1113-1138, December.
    5. Zhao, Qianyu & Zhang, Zhanlu, 2017. "Does China’s ‘increasing versus decreasing balance’ land-restructuring policy restructure rural life? Evidence from Dongfan Village, Shaanxi Province," Land Use Policy, Elsevier, vol. 68(C), pages 649-659.
    6. Getachew Jenber Feleke, 2022. "Industrialization Lessons to Africa and Other Developing Economies," International Journal of Science and Business, IJSAB International, vol. 16(1), pages 232-241.
    7. Chuanwang Sun & Xiaochun Meng & Shuijun Peng, 2017. "Effects of Waste-to-Energy Plants on China’s Urbanization: Evidence from a Hedonic Price Analysis in Shenzhen," Sustainability, MDPI, vol. 9(3), pages 1-18, March.
    8. Ertuğrul Güreşci, 2014. "The Positive Impact of Rural Migration," European Journal of Social Sciences Education and Research Articles, Revistia Research and Publishing, vol. 1, May - Aug.
    9. Fabien Candau & Elisa Dienesch, 2013. "Does Globalization explain Urbanization in the World and in Asia?," Working papers of CATT hal-01847940, HAL.
    10. Heshmati, Almas & Koohborfardhaghighi, Somayeh & Summers, Christopher R., 2022. "Integration of Technological and Social Components in a Smart Urban Development Model: A Case Study of China," IZA Discussion Papers 15211, Institute of Labor Economics (IZA).
    11. Takatoshi Tabuchi & Jacques†François Thisse & Xiwei Zhu, 2018. "Does Technological Progress Magnify Regional Disparities?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(2), pages 647-663, May.
    12. Jiangsheng Chen & Caixian Cui, 2018. "Large City or Small Town: an Empirical Analysis of the Effects of Migration Strategies of Rural Households on Income in China," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 13(1), pages 211-228, March.
    13. Zhu, Fengkai & Zhang, Fengrong & Ke, Xinli, 2018. "Rural industrial restructuring in China’s metropolitan suburbs: Evidence from the land use transition of rural enterprises in suburban Beijing," Land Use Policy, Elsevier, vol. 74(C), pages 121-129.
    14. David W. H. Wong & Harry F. Lee & Simon X. B. Zhao & Andy C. L. Tai, 2022. "Post-2008 Fiscal Stimulus Packages and the Driving Forces for China’s Urbanization," Land, MDPI, vol. 11(12), pages 1-16, December.
    15. Marian Rizov & Xufei Zhang, 2014. "Regional disparities and productivity in China: Evidence from manufacturing micro data," Papers in Regional Science, Wiley Blackwell, vol. 93(2), pages 321-339, June.

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    More about this item

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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