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Growth of Rural Industries in Post‐reform China: Patterns, Determinants and Consequences

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  • Rizwanul Islam

Abstract

The first question addressed by this paper relates to the very high growth rates achieved by China's rural industries during the post‐reform period. While growth rates have undoubtedly been extremely high, they can only be put in a proper perspective when growth in different components of the sector (i.e. township‐ and village‐owned and privately owned industries) is examined separately and compared with performance before the reforms. In this regard, an important finding of the paper is that as far as township and village industries are concerned, growth rates in the post‐reform period do not represent a sudden break from the rates of the earlier period — particularly the 1970s. It is mainly in the emergence and growth of private enterprises that the growth experience of the 1980s differs substantially from that of the 1970s. The sharp decline in the growth of all rural industries in 1989 does not appear to mark a reversal in their growth environment, but the beginning of a period of consolidation and rationalization; and, contrary to popular notion, private enterprises are not the worst sufferers in this process. Finally, the paper looks at regional imbalance. Historically, rural industries in China have been concentrated more in the eastern provinces along the coast, and this regional concentration has increased during the post‐reform period of high growth.

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  • Rizwanul Islam, 1991. "Growth of Rural Industries in Post‐reform China: Patterns, Determinants and Consequences," Development and Change, International Institute of Social Studies, vol. 22(4), pages 687-724, October.
    • Handle: RePEc:bla:devchg:v:22:y:1991:i:4:p:687-724
    DOI: 10.1111/j.1467-7660.1991.tb00431.x
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    References listed on IDEAS

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    1. Riskin, Carl, 1978. "Political conflict and rural industrialization in China," World Development, Elsevier, vol. 6(5), pages 681-692, May.
    2. Lele, Uma & Mellor, John W, 1981. "Technological Change, Distributive Bias and Labor Transfer in a Two-Sector Economy," Oxford Economic Papers, Oxford University Press, vol. 33(3), pages 426-441, November.
    3. Keith Griffin, 1984. "Institutional Reform and Economic Development in the Chinese Countryside," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-16662-6, December.
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    Cited by:

    1. Xuan Chen & Jing Chen & Chien-Yu Huang, 2019. "Too Risky to Focus on Agriculture? An Empirical Study of China’s Agricultural Households’ Off-Farm Employment Decisions," Sustainability, MDPI, vol. 11(3), pages 1-18, January.
    2. Smyth, Russell & Inder, Brett, 2004. "Is Chinese provincial real GDP per capita nonstationary?: Evidence from multiple trend break unit root tests," China Economic Review, Elsevier, vol. 15(1), pages 1-24.
    3. de Janvry, Alain & Sadoulet, Elisabeth & Zhu, Nong, 2005. "The Role of Non-Farm Incomes in Reducing Rural Poverty and Inequality in China," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt7ts2z766, Department of Agricultural & Resource Economics, UC Berkeley.
    4. Yanrui Wu, 1993. "Productive Efficiency in Chinese Industry," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 7(2), pages 58-66, November.
    5. Steven Lim & Derek Harland, 2001. "Dynamic Modelling of a Three-Sector Transitional Economy," Working Papers in Economics 01/01, University of Waikato.
    6. Lim, Steven & Feng, Gary, 2005. "Dynamic Comparative Advantage: Implications for China," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 1(2), pages 1-16.
    7. de Janvry, Alain & Sadoulet, Elisabeth & Zhu, Nong, 2005. "The Role of Non-Farm Incomes in Reducing Rural Poverty and Inequality in China," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt7ts2z766, Department of Agricultural & Resource Economics, UC Berkeley.
    8. Nong ZHU, 2002. "Déterminants de la participation aux activités non-agricoles et du revenu des ménages ruraux : le cas de la Chine," Working Papers 200223, CERDI.
    9. Nong ZHU, 2002. "L’impact des activités non-agricoles rurales sur le revenu des agriculteurs en Chine," Working Papers 200222, CERDI.
    10. Steven Lim & Michael P. Cameron & Krailert Taweekul & John Askwith, 2007. "Harnessing the Private Sector for Rural Development, Poverty Alleviation and HIV/AIDS Prevention," Working Papers in Economics 07/01, University of Waikato.

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