How evolving institutions shaped China’s economic geography

This article reviews how evolving institutions shaped China’s economic geography since the reform era. The review covers three areas. First, we examine reductions in spatial frictions through hukou reform and transportation expansion, and their effects on migration, productivity, welfare, and spatial inequality. Second, we review urban and rural land reforms, housing reform, land-based public finance, and the promotion tournament, which improved allocation but distorted land use, infrastructure, and local debt. Third, we discuss place-based policies and agglomeration, including special economic zones as bundled institutions combining economic incentives with political support. We highlight China’s contribution to core questions in economic geography.