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A Fragmented China: Measure and Determinants of Chinese Domestic Market Disintegration

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Poncet, Sandra·2005·Review of International Economics

Abstract

This paper studies the degree of integration of China's domestic market and investigates the determinants of inter-provincial trade barriers under the rubric endogenous trade policy theory. I rely on industry-level trade flows extracted from provincial input–output tables to develop a model that analyzes the magnitude and evolution of Chinese provinces’ engagement in domestic trade by computing all-inclusive indicators of trade barriers. Results underline that over the 1990s, not only was China's domestic market fragmentation along provincial borders great, but it also has become more severe at least between 1992 and 1997. The investigation of province-level and industry-level trade barriers confirms the relevance of applying the framework of endogenous protection to explain the level of impediments to trade between Chinese provinces. Findings emphasize that provinces’ domestic trade protection pursues a dual objective of socio-economic stability preservation and fiscal revenues maximization.

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Metadata

Authors
Poncet, S.
Venue
Review of International Economics
Publisher
Wiley
Published
2005-08
Volume
13
Issue
3
Pages
409-430
ISSN
  • 0965-7576 (ISSN-L)
  • 1467-9396
OpenAlex
W2150950700
Cited by
462
References
20
FWCI
24.18
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: A Fragmented China: Measure and Determinants of Chinese Domestic Market Disintegration. https://app.cochat.ai/papers/10.1111/j.1467-9396.2005.00514.x
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Poncet, S. (2005). A Fragmented China: Measure and Determinants of Chinese Domestic Market Disintegration. Review of International Economics. https://doi.org/10.1111/j.1467-9396.2005.00514.x

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