International trade and the internal movement of goods and people are closely related. China – increasingly open and with massive internal migration flows – provides an ideal setting to study these interrelationships. We develop a general equilibrium model of internal and external...

In this paper, we measure TFP losses in China's non-agricultural economy associated with labour and capital misallocation across provinces and sectors between 1985 and 2007. We also decompose the overall loss into factor market distortions within provinces (between state and non-state sectors)...

In this paper we measure the distortions in the allocation of labor and capital across provinces and sectors in China for the period 1985-2007. Most existing studies have measured factor market distortions by using some index of dispersion in individual factor returns. However, the map between...

Economic growth and development is intimately related to the decline of agriculture’s share of output and employment. This process of structural change has important implications for income and productivity differences between regions within a country or between countries themselves....