Abstract:Since the reform and opening up, China has experienced rapid economic growth, which could be called ―"wonders of the world". In this process, a significant feature was that the economic development of coastal areas was much faster than inland areas. What factors have led to the rise of China's coastal areas? By constructing two complementary indicators of marketization, we empirically investigate the importance of market development in the rise of

China's coastal areas, under the control of capital, nature resources, infrastructure construction and preferential policies. The panel data of China’s 28 provinces from 1985 to 2010 was used. Especially, to get a more credible result, we conducted a variety of robustness tests. Results showed us that market factors have played a crucial role in the rise in China's coastal areas.

Key Words:Rise of China's Coastal Areas; Economic Growth; Marketization Index; Index of Market Integration