INTERPROVINCIAL RESOURCE TRANSFERS IN CHINA, 1952-90

This article examines the interprovincial resource transfers in China over the period 1952-90 through a set of reconstructed national income statistics. It argues that the reconstructed data set establishes a b etter ground to develop such an examination. The study finds the exist ence of a moderate degree of interprovincial transfers of general reso urces, dramatic fluctuation and distinct subperiods, and wide differen ces among the provinces. These findings are different from the widespr ead view that the Chinese government has consistently transferred mass ive resources from economically advanced coastal provinces to less dev eloped inland areas. According to the analysis, the heavy transfers ma inly occurred during the period of the Third Front Constructions. Evid ently, the bulk of resources extracted from the better-off regions was utilized primarily for the purpose of the centre's expenditures but n ot for the improvement of the less developed inland provinces. In part icular, those south-western provinces with less developed economies di d not benefit as much as northern provinces from the resource transfer s. The provincial experiences differed considerably not only in the vo lume of resource inflow and outflow but also in changes between being a contributor and a recipient for individual provinces over time. Thes e changes contributed greatly to the formation of a number of distinct subperiods, and can be understood in the context of the subperiods.