No Razor's Edge: Reexamining Alwyn Young's Evidence for Increasing Inter-Provincial Trade Barriers in China

43 Pages Posted: 6 Mar 2006

See all articles by Carsten A. Holz

Carsten A. Holz

Hong Kong University of Science & Technology (HKUST) - Division of Social Science

Date Written: March 2, 2006

Abstract

Alwyn Young (2000) provided evidence for distortions begetting distortions in a partially reformed economy by examining barriers to inter-provincial trade in China. His findings of increasing barriers to inter-provincial trade are based on five arguments. This paper critically examines each of the five arguments and their evidence in turn, and concludes that in all five instances neither argument nor evidence are compelling. Furthermore, if inter-provincial trade barriers cause the specific consequences advocated by Alwyn Young, then evidence for the U.S. indicates a recent history of severe inter-state trade wars in the U.S.

Keywords: Protectionism, rent-seeking, distortions, law of one price, regional comparative advantages, industrial structure, price reform, transition policies (all: China)

JEL Classification: P2, P20, P23, P24, P27, P31, D72

Suggested Citation

Holz, Carsten A., No Razor's Edge: Reexamining Alwyn Young's Evidence for Increasing Inter-Provincial Trade Barriers in China (March 2, 2006). Available at SSRN: https://ssrn.com/abstract=887683 or http://dx.doi.org/10.2139/ssrn.887683

Carsten A. Holz (Contact Author)

Hong Kong University of Science & Technology (HKUST) - Division of Social Science ( email )

Division of Social Science
Clear Water Bay
Clear Water Bay, Kowloon
Hong Kong

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