China : Integration of National Product and Factor Markets, Economic Benefits and Policy Recommendations

Lack of market integration has been a long-standing concern in China. The existing empirical evidence on the degree and trend in local protectionism and market fragmentation, has painted a mixed picture - some concluding to increasing fragmentation, others pointing at increasing integration. This re...

Full description

Bibliographic Details
Main Author:	World Bank
Format:	PSD, Privatization and Industrial Policy
Language:	English en_US
Published:	Washington, DC 2012
Subjects:	ACCOUNTING ADMINISTERED PRICES ADMINISTRATIVE COSTS AGRICULTURE AUTONOMOUS REGIONS BANK LENDING BANK LOANS BANKING REFORM BUSINESS CYCLES CAPITAL FLOWS CAPITAL MARKETS CAPITAL MOBILITY COMMERCE COMMERCIAL BANKS COMPETITIVE PRICES COMPETITIVENESS CONSUMERS DECENTRALIZATION DEFICITS DEVELOPED COUNTRIES DEVELOPMENT STRATEGIES DOMESTIC MARKET ECONOMIC BENEFITS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMIC REFORM ECONOMIC SECTORS ECONOMIC WELFARE ECONOMISTS EMPIRICAL EVIDENCE EMPIRICAL RESEARCH EXPLOITATION FINANCIAL MARKETS FINANCIAL SECTOR FOREIGN COMPETITION FOREIGN ENTRY FREE TRADE GDP GINI COEFFICIENT HOME MARKET HOUSING IMPORTS INCOME DISTRIBUTION INDUSTRIALIZATION INSURANCE INTEREST RATE INTEREST RATES INTERNATIONAL COMPETITIVENESS INTERNATIONAL MARKETS INTERNATIONAL TRADE LABOR FORCE LABOR MARKET LABOR MARKETS LABOR PRODUCTIVITY LAWS LOCAL ENTERPRISES LOCAL GOVERNMENT LOCAL GOVERNMENTS MARGINAL PRODUCT MARGINAL PRODUCTIVITY MARKET DEMAND MARKET ECONOMY MARKET FRAGMENTATION MARKET INTEGRATION MARKET PRICES MARKET SEGMENTATION MONOPOLIES MUNICIPALITIES NATIONAL INCOME NATIONAL INCOME ACCOUNTING PACIFIC REGION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY INCREASES PROTECTIONISM PUBLIC SERVICES RENT SEEKING RETAIL SALES SAVINGS SEGMENTATIONS SOCIAL SERVICES SPREAD STRUCTURAL CHANGE TARIFF BARRIERS TELECOMMUNICATIONS TIME SERIES TRADE BARRIERS TRADE DISPUTES TRADE FLOWS TRANSPORT UNEMPLOYMENT UNFAIR COMPETITION URBAN PUBLIC SERVICES URBAN SERVICES URBANIZATION VALUE ADDED WAGES WELFARE GAINS WTO
Online Access:	http://documents.worldbank.org/curated/en/2005/06/6137985/china-integration-national-product-factor-markets-economic-benefits-policy-recommendations http://hdl.handle.net/10986/8690

id	okr-10986-8690
recordtype	oai_dc
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCOUNTING ADMINISTERED PRICES ADMINISTRATIVE COSTS AGRICULTURE AUTONOMOUS REGIONS BANK LENDING BANK LOANS BANKING REFORM BUSINESS CYCLES CAPITAL FLOWS CAPITAL MARKETS CAPITAL MOBILITY COMMERCE COMMERCIAL BANKS COMPETITIVE PRICES COMPETITIVENESS CONSUMERS DECENTRALIZATION DEFICITS DEVELOPED COUNTRIES DEVELOPMENT STRATEGIES DOMESTIC MARKET ECONOMIC BENEFITS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMIC REFORM ECONOMIC SECTORS ECONOMIC WELFARE ECONOMISTS EMPIRICAL EVIDENCE EMPIRICAL RESEARCH EXPLOITATION FINANCIAL MARKETS FINANCIAL SECTOR FOREIGN COMPETITION FOREIGN ENTRY FREE TRADE GDP GINI COEFFICIENT HOME MARKET HOUSING IMPORTS INCOME DISTRIBUTION INDUSTRIALIZATION INSURANCE INTEREST RATE INTEREST RATES INTERNATIONAL COMPETITIVENESS INTERNATIONAL MARKETS INTERNATIONAL TRADE LABOR FORCE LABOR MARKET LABOR MARKETS LABOR PRODUCTIVITY LAWS LOCAL ENTERPRISES LOCAL GOVERNMENT LOCAL GOVERNMENTS MARGINAL PRODUCT MARGINAL PRODUCTIVITY MARKET DEMAND MARKET ECONOMY MARKET FRAGMENTATION MARKET INTEGRATION MARKET PRICES MARKET SEGMENTATION MONOPOLIES MUNICIPALITIES NATIONAL INCOME NATIONAL INCOME ACCOUNTING PACIFIC REGION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY INCREASES PROTECTIONISM PUBLIC SERVICES RENT SEEKING RETAIL SALES SAVINGS SEGMENTATIONS SOCIAL SERVICES SPREAD STRUCTURAL CHANGE TARIFF BARRIERS TELECOMMUNICATIONS TIME SERIES TRADE BARRIERS TRADE DISPUTES TRADE FLOWS TRANSPORT UNEMPLOYMENT UNFAIR COMPETITION URBAN PUBLIC SERVICES URBAN SERVICES URBANIZATION VALUE ADDED WAGES WELFARE GAINS WTO
spellingShingle	ACCOUNTING ADMINISTERED PRICES ADMINISTRATIVE COSTS AGRICULTURE AUTONOMOUS REGIONS BANK LENDING BANK LOANS BANKING REFORM BUSINESS CYCLES CAPITAL FLOWS CAPITAL MARKETS CAPITAL MOBILITY COMMERCE COMMERCIAL BANKS COMPETITIVE PRICES COMPETITIVENESS CONSUMERS DECENTRALIZATION DEFICITS DEVELOPED COUNTRIES DEVELOPMENT STRATEGIES DOMESTIC MARKET ECONOMIC BENEFITS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMIC REFORM ECONOMIC SECTORS ECONOMIC WELFARE ECONOMISTS EMPIRICAL EVIDENCE EMPIRICAL RESEARCH EXPLOITATION FINANCIAL MARKETS FINANCIAL SECTOR FOREIGN COMPETITION FOREIGN ENTRY FREE TRADE GDP GINI COEFFICIENT HOME MARKET HOUSING IMPORTS INCOME DISTRIBUTION INDUSTRIALIZATION INSURANCE INTEREST RATE INTEREST RATES INTERNATIONAL COMPETITIVENESS INTERNATIONAL MARKETS INTERNATIONAL TRADE LABOR FORCE LABOR MARKET LABOR MARKETS LABOR PRODUCTIVITY LAWS LOCAL ENTERPRISES LOCAL GOVERNMENT LOCAL GOVERNMENTS MARGINAL PRODUCT MARGINAL PRODUCTIVITY MARKET DEMAND MARKET ECONOMY MARKET FRAGMENTATION MARKET INTEGRATION MARKET PRICES MARKET SEGMENTATION MONOPOLIES MUNICIPALITIES NATIONAL INCOME NATIONAL INCOME ACCOUNTING PACIFIC REGION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY INCREASES PROTECTIONISM PUBLIC SERVICES RENT SEEKING RETAIL SALES SAVINGS SEGMENTATIONS SOCIAL SERVICES SPREAD STRUCTURAL CHANGE TARIFF BARRIERS TELECOMMUNICATIONS TIME SERIES TRADE BARRIERS TRADE DISPUTES TRADE FLOWS TRANSPORT UNEMPLOYMENT UNFAIR COMPETITION URBAN PUBLIC SERVICES URBAN SERVICES URBANIZATION VALUE ADDED WAGES WELFARE GAINS WTO World Bank China : Integration of National Product and Factor Markets, Economic Benefits and Policy Recommendations
geographic_facet	East Asia and Pacific Asia East Asia China
description	Lack of market integration has been a long-standing concern in China. The existing empirical evidence on the degree and trend in local protectionism and market fragmentation, has painted a mixed picture - some concluding to increasing fragmentation, others pointing at increasing integration. This report uses a comprehensive set of survey data, and a provincial data set to examine the extent and trends in market fragmentation. It finds mixed results across the three key markets in product, labor and capital: Since the early 1990s, the product market is increasingly integrating, with converging prices across the country, and increasing regional specialization. The survey data suggests strongly that regional protectionism declined significantly over the past 10 years. The labor market, while getting more integrated over the reform period, still shows significant fragmentation across regions and across sectors. The remains of the hukou system, the limited access migrants have to social services, and the highly uneven quality of public services reinforce labor market segmentations. The capital markets still show large misallocations in capital across industries, and across China's regions. More significantly, the empirical evidence indicates that the degree of capital market fragmentation has actually increased in the 1990s compared to the 1980s. As China is moving towards a Xiaokang Society, national market integration takes on increasing prominence. Indeed, the gains for China of better integration of goods and factor markets can be huge - much larger than the gains expected from the World Trade Organization (WTO) accession for which the country worked so hard. The report conducts policy simulations to estimate these gains. The report also estimates the economic gains from greater financial market integration. It conducts a simulation by changing the long standing urban bias policy through the movement of investment from cities to rural areas, while keeping the total amount investment constant. As a continental economy, it is time China starts its own determined effort to more rapidly integrate its markets, to maximize efficiency and growth, and ensure that the welfare gains get distributed more evenly across the nation.
format	Economic & Sector Work :: PSD, Privatization and Industrial Policy
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	China : Integration of National Product and Factor Markets, Economic Benefits and Policy Recommendations
title_short	China : Integration of National Product and Factor Markets, Economic Benefits and Policy Recommendations
title_full	China : Integration of National Product and Factor Markets, Economic Benefits and Policy Recommendations
title_fullStr	China : Integration of National Product and Factor Markets, Economic Benefits and Policy Recommendations
title_full_unstemmed	China : Integration of National Product and Factor Markets, Economic Benefits and Policy Recommendations
title_sort	china : integration of national product and factor markets, economic benefits and policy recommendations
publisher	Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2005/06/6137985/china-integration-national-product-factor-markets-economic-benefits-policy-recommendations http://hdl.handle.net/10986/8690
_version_	1764405222137921536
spelling	okr-10986-86902021-04-23T14:02:39Z China : Integration of National Product and Factor Markets, Economic Benefits and Policy Recommendations World Bank ACCOUNTING ADMINISTERED PRICES ADMINISTRATIVE COSTS AGRICULTURE AUTONOMOUS REGIONS BANK LENDING BANK LOANS BANKING REFORM BUSINESS CYCLES CAPITAL FLOWS CAPITAL MARKETS CAPITAL MOBILITY COMMERCE COMMERCIAL BANKS COMPETITIVE PRICES COMPETITIVENESS CONSUMERS DECENTRALIZATION DEFICITS DEVELOPED COUNTRIES DEVELOPMENT STRATEGIES DOMESTIC MARKET ECONOMIC BENEFITS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMIC REFORM ECONOMIC SECTORS ECONOMIC WELFARE ECONOMISTS EMPIRICAL EVIDENCE EMPIRICAL RESEARCH EXPLOITATION FINANCIAL MARKETS FINANCIAL SECTOR FOREIGN COMPETITION FOREIGN ENTRY FREE TRADE GDP GINI COEFFICIENT HOME MARKET HOUSING IMPORTS INCOME DISTRIBUTION INDUSTRIALIZATION INSURANCE INTEREST RATE INTEREST RATES INTERNATIONAL COMPETITIVENESS INTERNATIONAL MARKETS INTERNATIONAL TRADE LABOR FORCE LABOR MARKET LABOR MARKETS LABOR PRODUCTIVITY LAWS LOCAL ENTERPRISES LOCAL GOVERNMENT LOCAL GOVERNMENTS MARGINAL PRODUCT MARGINAL PRODUCTIVITY MARKET DEMAND MARKET ECONOMY MARKET FRAGMENTATION MARKET INTEGRATION MARKET PRICES MARKET SEGMENTATION MONOPOLIES MUNICIPALITIES NATIONAL INCOME NATIONAL INCOME ACCOUNTING PACIFIC REGION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY INCREASES PROTECTIONISM PUBLIC SERVICES RENT SEEKING RETAIL SALES SAVINGS SEGMENTATIONS SOCIAL SERVICES SPREAD STRUCTURAL CHANGE TARIFF BARRIERS TELECOMMUNICATIONS TIME SERIES TRADE BARRIERS TRADE DISPUTES TRADE FLOWS TRANSPORT UNEMPLOYMENT UNFAIR COMPETITION URBAN PUBLIC SERVICES URBAN SERVICES URBANIZATION VALUE ADDED WAGES WELFARE GAINS WTO Lack of market integration has been a long-standing concern in China. The existing empirical evidence on the degree and trend in local protectionism and market fragmentation, has painted a mixed picture - some concluding to increasing fragmentation, others pointing at increasing integration. This report uses a comprehensive set of survey data, and a provincial data set to examine the extent and trends in market fragmentation. It finds mixed results across the three key markets in product, labor and capital: Since the early 1990s, the product market is increasingly integrating, with converging prices across the country, and increasing regional specialization. The survey data suggests strongly that regional protectionism declined significantly over the past 10 years. The labor market, while getting more integrated over the reform period, still shows significant fragmentation across regions and across sectors. The remains of the hukou system, the limited access migrants have to social services, and the highly uneven quality of public services reinforce labor market segmentations. The capital markets still show large misallocations in capital across industries, and across China's regions. More significantly, the empirical evidence indicates that the degree of capital market fragmentation has actually increased in the 1990s compared to the 1980s. As China is moving towards a Xiaokang Society, national market integration takes on increasing prominence. Indeed, the gains for China of better integration of goods and factor markets can be huge - much larger than the gains expected from the World Trade Organization (WTO) accession for which the country worked so hard. The report conducts policy simulations to estimate these gains. The report also estimates the economic gains from greater financial market integration. It conducts a simulation by changing the long standing urban bias policy through the movement of investment from cities to rural areas, while keeping the total amount investment constant. As a continental economy, it is time China starts its own determined effort to more rapidly integrate its markets, to maximize efficiency and growth, and ensure that the welfare gains get distributed more evenly across the nation. 2012-06-21T18:57:42Z 2012-06-21T18:57:42Z 2005-06 http://documents.worldbank.org/curated/en/2005/06/6137985/china-integration-national-product-factor-markets-economic-benefits-policy-recommendations http://hdl.handle.net/10986/8690 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: PSD, Privatization and Industrial Policy Economic & Sector Work East Asia and Pacific Asia East Asia China

China : Integration of National Product and Factor Markets, Economic Benefits and Policy Recommendations

Similar Items