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From Urban–Rural Division to Urban–Rural Integration: A Systematic Cost Explanation and Chengdu’s Experience
2018-01-12 14:53:00

China & World Economy / 86–105, Vol. 26, No. 1, 2018


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

Qian Lu, Shurong Yao*


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.


Key words: Chengdu reform, land property rights, systematic cost, urban–rural coordination, urban–rural integration
JEL codes: P21, P23, P25, P26