Ming Lu and Guanghua Wan, 2014, “Urbanization and Urban System in China: Research Findings and Policy Recommendations,” Journal of Economic Survey, pp. 671–685. (Republished in Iris Claus and Les Oxley eds., 2015, China's Economy: A Collection of Surveys, John Wiley & Sons, Ltd.)
Urbanization and Urban System in China: Research Findings and Policy Recommendations
Ming LU
a,b and Guanghua WAN
c*
(
aShanghai Jiao Tong University,
bFudan University,
cAsian Development Bank)
Abstract: This paper provides a literature review on urbanization in China. Research findings indicate that PRC’s urbanization is incomplete; the level of urbanization lags behind its industrialization and development status; and while there are too many small cities, the large cities in China are not large enough. These are mainly because of the institutional constraints of the
Hukou system and land system on labor mobility, and have led to segregation, efficiency loss, distortion in the urban system and adverse impacts on equity, as discussed in the paper. Finally, major policy recommendations are offered for removing the distortions and steering China’s urbanization onto an efficient and equitable path.
Keywords: urbanization, urban system, inequality, segregation,
Hukou, China
* Corresponding author, Email: gwan@adb.org. The authors gratefully acknowledge the financial support from China’s National Natural Science Funds (71133004, 71063022) and National Social Science Funds (13&ZD015 and 12AZD045). We also thank helpful comments from Zhao Chen, Iris Claus, Les Oxley, and the research support from the Fudan Lab for China Development Studies.
Downloadable: