Hub-periphery development pattern and inclusive growth: Case study of Guangdong Province

Abstract

The hub-periphery development pattern of the Guangdong economy, to some extent, is a miniature of that of the Chinese economy. The Pearl River Delta, drawing from its first-nature comparative advantages in factor endowments and proximity to Hong Kong (SAR China) and Macau (SAR, China) and the second-nature advantages as first-movers in the reforms in attracting and retaining domestic and foreign resources, has developed into a regional economic center. This paper examines the pattern of inter- and intra- provincial migration and that of the concentration of production to explore the challenges and opportunities for the success of "double transfer". It suggests a four-prong approach-improve the business environment, support the realization of latent comparative advantages, increase the skill level of labor force to support the upgrade of production structure, and protect the vulnerable-to support the inclusive growth of the economy in Guangdong in a sustainable manner.