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Foreign direct investment (FDI) in China is heavily concentrated in coastal region, which has attracted large amount of rural migrant workers from inland region. This type of population migration associated with FDI may have an impact on China’s inland urbanization. There is however little research on this topic. This paper aims to investigate the interregional impact of FDI on China’s inland urbanization. The study finds that on average FDI has negative interregional impact on inland urbanization. However, FDI in coastal and inland regions engaged in different trade modes (processing versus ordinary trade) has different interregional impact on China’s inland urbanization.
This paper seeks to explore the motivations behind agricultural trade-related support policies through extending the two-sector specific factor production model to three sectors to make the model more relevant for a one-party state such as China. This model suggests that the switch from taxing to subsidizing the agricultural sector depends not only on changes in the economy’s structure but, more critically, on the underlying political support from heterogeneous interest groups in the course of economic development. The equilibrium agricultural protection level is determined by equating the marginal political returns from supporting farmers with the marginal political costs from opposing groups (including manufacturers).
The mismatch between a laborer’s abilities and the goals set forth by a training program is one of the most pressing concerns for a labor training program. This paper looks at the incentives for a laborer to enter a rural labor training program and demonstrates a clear method of analyzing the participation issues using instrumental regressions on the data collected from a case study a “poverty city” in the Zhejiang province, China. This paper shows that a pre-program wage drop may induce workers of a higher caliber to enter the training program and cause a “cream-skimming” effect on its outcome because of the S-shaped labor supply curve for the rural population who live in poverty. The result of the cream-skimming effect enhances the traditional view that a pre-program wage drop may reduce “opportunity cost” to enter a training program. This extension can be handy to revise future designs of rural labor training programs.
This chapter aims to provide a critical examination of the China Model of development. This chapter has three parts: first, a discussion what the major characteristics of the China Model are and why it is attractive to developing countries; second, an argument that researchers should not take the China Model for granted as its constituents are highly contested, and the term “Beijing Consensus” ironically belies the fact that there is no consensus on how to characterize China's developmental experience over the past thirty years; third, an analysis of the implications of the China Model for developing countries by examining the following three questions: (1) How can researchers move beyond the ideological fault line in the China field? (2) Why does the China Model work while other models such as neoliberalism and state socialism fail? (3) Can the China Model be copied?