chapter  8
21 Pages

Market integration across regions

Some have argued that China’s provinces are becoming less integrated but, because­of­the­method­and­the­data,­ the­measures­are­very­difficult.1 What can we say about regional integration? A number of measures exist to estimate the degree of interdependence between­several­regions.­Two­main­methods­may­be­identified:

•­ direct­measures­of­ integration­based­on­different­ types­of­economic­flows:­ trade­flows­and­capital­flows;

•­ the­potential­consequences­of­integration,­considering­either­the­process­of­ specialization­of­ each­province,­or­ the­prices­fluctuations­or­ the­effects­of­ local or national shocks.