The extent and persistence of the inequality of regional output is an important policy issue in China and its sources have been the subject of considerable empirical research. Yet we have relatively little empirical knowledge of the effects on the regional distribution of output of shocks to...

For the past 40 years, the most dynamic economies in the world were China and India. From approx. 5% of US GDP level, China grows to 26% and India to 11% of current US levels. The ratio of foreign trade to GDP is similar for both countries as well as capital flows to GDP. So why did China...