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The Oxford Companion to the Economics of China$
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Shenggen Fan, Ravi Kanbur, Shang-Jin Wei, and Xiaobo Zhang

Print publication date: 2014

Print ISBN-13: 9780199678204

Published to Oxford Scholarship Online: December 2014

DOI: 10.1093/acprof:oso/9780199678204.001.0001

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Urbanization in China

Urbanization in China

34 Urbanization in China
The Oxford Companion to the Economics of China

J. Vernon Henderson

Oxford University Press

This chapter discusses China’s urbanization process, which played a crucial role in its economic growth. Key features and challenges of China’s urbanization process include the restraints imposed on migration from the rural sector into the urban sector. These restraints delayed and distorted the urbanization process, and may be responsible for China’s extraordinary degree of income and social inequality. The discussions also cover the development of an economically healthy urban economic hierarchy emerging out of the Maoist era; biases in fiscal allocations and in capital markets controlled by the state; and state control of the financial sector and legal system.

Keywords:   migration, income inequality, urban economy, economic hierarchy, Maoist era, financial regulation, state control

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