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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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Local investment climates and competition among cities

Local investment climates and competition among cities

Chapter:
(p.235) 36 Local investment climates and competition among cities
Source:
The Oxford Companion to the Economics of China
Author(s):

David Dollar

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199678204.003.0037

This chapter discusses the opening up of Chinese cities to foreign investment and trade during the reform period. Under the planned economy China was largely cut off from global trade and investment, but the encouragement of autonomy for the major cities, investment in local economic infrastructure, and China’s huge labour resource have been key aspects of China’s reform and its resulting success in achieving investment and growth. This system also contributes to some of the key challenges facing China, including environmental degradation, rising inequality, lack of innovation, and government corruption.

Keywords:   Chinese economy, macroeconomic policy, economic reform, foreign investment, trade, local autonomy

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