Via a comparison of two cities in China, Nanjing and Suzhou, this article finds that pre-reform economic structures have had a significant effect on economic performance. While stagnation and the strengthening of dependence on upper levels of government occurred in Nanjing, developmental dispersion and rapid duplication of growth processes took place in Suzhou. The article asserts that the economic role of local governments and government-enterprise relations are being superseded by a greater focus on existing relations between different levels of government. Still, such relations are developing under the influence of regional differences in China’s transitional economy.
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