ABSTRACT
This chapter focuses on the regionalisation process gleaned through an investigation of the beef cattle industry. Embedded in China’s recent policies on regionalisation are lofty principles of allowing regional development to be guided by market developments and relative factor endowments, and for economic co-operation and coordination to be driven by a more open economy. If Central and local governments pull back on their major influence over the beef cattle industry in its initial stage of development, then market forces may play a greater role in regional activity and integration. The importance of improving marketing institutions and services to promote regional integration is even more profound for the remote, less developed regions. A paucity of data prevented complete empirical testing of the extent of integration across the beef cattle regions. Less-than-perfect integration is not the result of direct trade barriers or a shortage of inter-regional economic agents such as cattle, beef and offal dealers.
