China’s Urbanization and the World Economy

Fan Zhang, National School of Development, Peking University, China

‘This book provides a fascinating perspective on why China will very likely continue to play a major role in world export at a time when it is losing its comparative advantage in labor-intensive manufacturing products as a result of rapidly rising labor cost and appreciation of its currency—the secret lies in the fact that China (as the most populous nation) can benefit from increasing returns to scale. However, the author also clearly outlines the enormous challenges ahead of China: to urbanize and integrate most of its rural population as a precondition for China to explore its potential advantage in scale economy through agglomeration effects.’

• Contents: Preface Prologue Part I: China’s Urbanization 1. China’s Urbanization: History and Facts 2. The Road Map and Logic of China’s Urbanization 3. Industrialization and Urban Development 4. Labor Migration 5. Land and Local Government Finance 6. Infrastructure and Housing Construction 7. Social Aspects of Urbanization 8. Other Problems with Urbanization 9. The System of the Cities Part II: China’s Impacts on the World Market 10. Overall Estimates and Assumptions 11. Raw Materials and Capital Goods 12. Consumer Market 13. Relocation of Factors: Labor and Capital 14. Macroeconomic Impacts Part III: Choices of China and the World 15. China’s Choices 16. The Choices of the Rest of the World Conclusions Reference Index