Resource abundance and regional development in China

Over the past several decades, China has made tremendous progress in market integration and infrastructure development. Demand for natural resources has increased from the booming coastal economies, causing the terms of trade to favour the resource sector, which is predominantly based in the interio...

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Main Authors: Zhang, Xiaobo, Xing, Li, Fan, Shenggen, Luo, Xiaopeng
Format: Journal Article
Language:Inglés
Published: Wiley 2008
Subjects:
Online Access:https://hdl.handle.net/10568/162378
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author Zhang, Xiaobo
Xing, Li
Fan, Shenggen
Luo, Xiaopeng
author_browse Fan, Shenggen
Luo, Xiaopeng
Xing, Li
Zhang, Xiaobo
author_facet Zhang, Xiaobo
Xing, Li
Fan, Shenggen
Luo, Xiaopeng
author_sort Zhang, Xiaobo
collection Repository of Agricultural Research Outputs (CGSpace)
description Over the past several decades, China has made tremendous progress in market integration and infrastructure development. Demand for natural resources has increased from the booming coastal economies, causing the terms of trade to favour the resource sector, which is predominantly based in the interior regions of the country. However, the gap in economic development level between the coastal and inland regions has widened significantly. In this paper, using a panel dataset at the provincial level, we show that Chinese provinces with abundant resources perform worse than their resource‐poor counterparts in terms of per capita consumption growth. This trend that resource‐poor areas are better off than resource‐rich areas is particularly prominent in rural areas. Because of the institutional arrangements regarding property rights of natural resources, most gains from the resource boom have been captured either by the government‐ or state‐owned enterprises. Thus, the windfall of natural resources has more to do with government consumption than household consumption. Moreover, in resource‐rich areas, greater revenues accrued from natural resources bid up the price of non‐tradable goods and hurt the competitiveness of the local economy.
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spelling CGSpace1623782025-02-19T14:08:11Z Resource abundance and regional development in China Zhang, Xiaobo Xing, Li Fan, Shenggen Luo, Xiaopeng regional inequality currencies property rights Over the past several decades, China has made tremendous progress in market integration and infrastructure development. Demand for natural resources has increased from the booming coastal economies, causing the terms of trade to favour the resource sector, which is predominantly based in the interior regions of the country. However, the gap in economic development level between the coastal and inland regions has widened significantly. In this paper, using a panel dataset at the provincial level, we show that Chinese provinces with abundant resources perform worse than their resource‐poor counterparts in terms of per capita consumption growth. This trend that resource‐poor areas are better off than resource‐rich areas is particularly prominent in rural areas. Because of the institutional arrangements regarding property rights of natural resources, most gains from the resource boom have been captured either by the government‐ or state‐owned enterprises. Thus, the windfall of natural resources has more to do with government consumption than household consumption. Moreover, in resource‐rich areas, greater revenues accrued from natural resources bid up the price of non‐tradable goods and hurt the competitiveness of the local economy. 2008-01 2024-11-21T10:02:40Z 2024-11-21T10:02:40Z Journal Article https://hdl.handle.net/10568/162378 en Limited Access Wiley Zhang, Xiaobo; Xing, Li; Fan, Shenggen; Luo, Xiaopeng. 2008. Resource abundance and regional development in China. Economics of Transition Economics of Transition 16(1): 7-29
spellingShingle regional inequality
currencies
property rights
Zhang, Xiaobo
Xing, Li
Fan, Shenggen
Luo, Xiaopeng
Resource abundance and regional development in China
title Resource abundance and regional development in China
title_full Resource abundance and regional development in China
title_fullStr Resource abundance and regional development in China
title_full_unstemmed Resource abundance and regional development in China
title_short Resource abundance and regional development in China
title_sort resource abundance and regional development in china
topic regional inequality
currencies
property rights
url https://hdl.handle.net/10568/162378
work_keys_str_mv AT zhangxiaobo resourceabundanceandregionaldevelopmentinchina
AT xingli resourceabundanceandregionaldevelopmentinchina
AT fanshenggen resourceabundanceandregionaldevelopmentinchina
AT luoxiaopeng resourceabundanceandregionaldevelopmentinchina