Abstract
ABSTRACT Recent research has concluded that foreign trade is a key factor shaping the urbanization process in developing countries. Yet the empirical evidence is still in its infancy. This paper seeks to fill this gap by using the Financial Crisis of 2008 as a quasi-experiment to examine how trade shocks have affected urbanization in China. We find that such shocks have reduced the change in the urbanization rate by 0.4%. These results are robust after controlling for other factors that affect urbanization. We explore the underlying mechanisms and find that trade shocks reduce the urban – rural income gap by lowering the income of urban residents and slowing down the urbanization process.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
