ECON 336 Chapter Notes - Chapter 5: Marginal Product, Tves, Comparative Advantage

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The urban rural gap in china is very large and has some important characteristics: different governance structures and different property rights, different forms of citizenship, one for rural, one for urban. Rural chinese have less privileges than urban dwellers: there are strict restrictions on mobility, where it is often difficult for rural chinese to move to urban areas; however, more immigration is beginning to occur. There is a substantial urban rural income gap and is a product of the urban bias in policy making. Although there has been significant movement from rural to urban, it is unlikely that current gaps will be reduced. 5. 1 a dualistic system: the division between urban and rural. In traditional china, there were few urban rural barriers. These barriers have origins in socialist china. Because citizens were connected to the socialist state by their workplace (which were almost all publically owned) However, how these were organized was different in urban and rural areas.

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