Abstract: This paper explores domestic trade between different regions in China. It presents that scale of inter-provincial trade is gradually expanding, but its distribution is extremely uneven across regions. Majority of trade surplus is in the eastern region, while central and western regions have trade deficit. It examines regional industrial linkages and price transmission effects. It shows that majority of trade is between neighbor provinces. Price transmission effects, from provinces in upstream industrial chain to ones in downstream chain, are strong while price fluctuations will cause adjustments of relative benefits of different provinces.
Keywords: Regional Trade, Industrial Linkage, Price Transmission Effects
source:Finance & Trade Economics ,No6,2013