The effect of trade liberalization on the spatial concentration of economic activities is not straightforward. It has, on the one hand been widely argued that protectionism increase spatial concentration when firms locate close to the main domestic markets, but it has also been argued that trade...

The reduced influence of soft budget constrints is often seen as an explanation for the successful growth of China's non-state sector. Views differ, however, as to whether collectively owned rural enterprise are in fact subject to hard financial discipline. This paper reports an inquiry into the...