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Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

Postal Subscription Code 80-978

Front Econ Chin    2011, Vol. 6 Issue (1) : 1-21
research-article |
Urbanization and Urban-Rural Inequality in China: A New Perspective from the Government’s Development Strategy
Justin Yifu Lin1(), Binkai Chen2()
1. The World Bank, Washington, DC 20433, USA; 2. School of Economics, Central University of Finance and Economics, Beijing 100083, China
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This paper offers a novel explanation for the lower urbanization rate and great urban-rural inequality in China. Our study reveals that, heavy-industry-oriented development strategy will result in lower urbanization rate and higher urban-rural inequality. The greater the degree of heavy-industryoriented development strategy is, the lower the urbanization rate is, and the higher the urban-rural inequality is. From a dynamic perspective, heavy-industryoriented development strategy reduces the capital accumulation rate, which results in a slower progress of urbanization and a highly persistent urban-rural inequality. The higher the degree of heavy-industry-oriented development strategy, the slower the progress of urbanization, and the longer the urban-rural inequality will last. This mechanism can potentially explain the lower urbanization rate and higher urban-rural inequality in China under a unified framework.

Keywords development strategy      urbanization      urban-rural inequality     
Corresponding Authors: Justin Yifu Lin,; Binkai Chen,   
Issue Date: 05 March 2011
 Cite this article:   
Binkai Chen,Justin Yifu Lin. Urbanization and Urban-Rural Inequality in China: A New Perspective from the Government’s Development Strategy[J]. Front Econ Chin, 2011, 6(1): 1-21.
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