28 Pages Posted: 20 Apr 2016
Date Written: April 1, 2011
Over the last three decades, China's product, labor, and capital markets have become gradually more integrated within its borders, although integration has been significantly slower for capital markets. There remains a significant urban-rural divide, and Chinese cities tend to be under-sized by international standards. China has also integrated globally, initially through the Special Economic Zones on the coast as launching grounds to connect with world markets, and subsequently through the accession to the World Trade Organization. For future policy considerations, this paper argues that its economic production needs to be spatially concentrated, and its social services need to be spread out to the interior to ensure harmonious development and domestic integration (through inclusive rural-urban transformations and effective territorial development).
Keywords: Economic Theory & Research, Banks & Banking Reform, Debt Markets, Emerging Markets, Access to Finance
Suggested Citation: Suggested Citation
Chen, Qingqing and Goh, Chor-ching and Xu, Lixin Colin and Sun, Bo and Xu, Lixin Colin, Market Integration in China (April 1, 2011). World Bank Policy Research Working Paper No. 5630. Available at SSRN: https://ssrn.com/abstract=1806134
By Xiaobo Zhang