From Urban–Rural Division to Urban–Rural Integration: A Systematic Cost Explanation and Chengdu's Experience

20 Pages Posted: 18 Jan 2018

See all articles by Qian Lu

Qian Lu

Central University of Finance and Economics (CUFE)

Shurong Yao

Sichuan University

Date Written: January–February 2018

Abstract

There is a considerable urban–rural divide in economic wellbeing in China. Since it was established as an urban–rural reform zone in 2007, Chengdu has seen significant reduction in the disparity in its urban and rural household incomes. From 2007 to 2010, Chengdu adopted urban–rural coordination policy by defining rural land property rights and establishing a rural land market. After 2010, Chengdu adopted an urban–rural integration strategy and allowed villager and business enterprises to participate in land consolidation. The transition from urban–rural division to urban–rural integration involves reducing systematic costs. The degree of urban–rural integration depends on the extent of the reduction in systematic costs.

Keywords: Chengdu reform, land property rights, systematic cost, urban–rural coordination, urban–rural integration

JEL Classification: P21, P23, P25, P26

Suggested Citation

Lu, Qian and Yao, Shurong, From Urban–Rural Division to Urban–Rural Integration: A Systematic Cost Explanation and Chengdu's Experience (January–February 2018). China & World Economy, Vol. 26, Issue 1, pp. 86-105, 2018, Available at SSRN: https://ssrn.com/abstract=3104211 or http://dx.doi.org/10.1111/cwe.12230

Qian Lu (Contact Author)

Central University of Finance and Economics (CUFE) ( email )

39 South College Road
Haidian District
Beijing, Beijing 100081
China

Shurong Yao

Sichuan University

No. 24 South Section1, Yihuan Road,
Chengdu, 610064
China

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