Whither China? Reform and economic integration among Chinese regions
Year: 2015
Type: article
Abstract: This paper investigates the changing nature of economic integration in China. Specifically, we consider business-cycle synchronization (correlation of demand and supply shocks) among Chinese provinces during the period 1955–2011. We find that the symmetry of supply shocks has declined after the liberalization initiated in 1978. In contrast, the correlation of demand shocks has increased during the same period. We then seek to explain these correlations by relating them to factors that proxy for interprovincial trade and vulnerability of regions to idiosyncratic shocks. Interprovincial trade and similarity in factor endowments tend to make shocks more symmetric. Surprisingly, foreign trade and inward FDI have little effect on the symmetry of shocks.
Source: China Economic Review
Authors: Shuo Huang, Jan Fidrmuc, Jarko Fidrmuc
Language: English
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $4,380
OpenAlex ID: W3123549029