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China urban and rural divide.

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The rural-urban divide is an entrenched gap in productivity, income and living standards It is further aggravated by the village ownership of rural land It is frozen by the hukou system, in effect, one country with two two social insurance systems and two classes of people It is a fundamental source of poverty and social injustice It constrains household consumption and leads to a ridiculously high national saving rate And it is also the root of cheap labor and the Chinese advantage

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Uploaded on
November 8, 2022
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Written in
2021/2022
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Class notes
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Yingfeng xu
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What is the rural-urban divide? Why is it so critical to remove the rural-urban divide? Why has it been difficult to remove the divide? Conclusion




5.1 Rural-urban Divide
ECON 211, Winter 2021-22


Yingfeng Xu

Department of Economics, University of Alberta


February 10, 2022

,What is the rural-urban divide? Why is it so critical to remove the rural-urban divide? Why has it been difficult to remove the divide? Conclusion



How has the rural-urban divide evolved?




What is the rural-urban divide?
Why is it critical to remove this divide?
Why has it been so difficult to remove it?

, What is the rural-urban divide? Why is it so critical to remove the rural-urban divide? Why has it been difficult to remove the divide? Conclusion



Dualism in developing economies



A dual social and economic structure is quite common among developing
economies
However, China has two unique characteristics:
The benefits of local government spending is tied to the hukou system, which means
rural residents are largely on their own
Land is collectively owned at the village and farmers do not own land and cannot sell
it in order to leave land
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