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The Industrialization of Rural China (Hardcover)
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The Industrialization of Rural China (Hardcover)
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The growth of rural industry in China since 1978 has been
explosive. Much of the existing literature explains its growth in
terms of changes in economic policy. By means of a combination of
privatization, liberalization and fiscal decentralization, it is
argued, rural industrialization has taken off. This book takes
issue with such claims. Using a newly constructed dataset covering
all of China's 2000 plus counties and complemented by a detailed
econometric study of county-level industrialization in the
provinces of Sichuan, Guangdong and Jiangsu, the author
demonstrates that history mattered. More precisely, it is argued
that the development of rural industry in the Maoist period set in
motion a process of learning-by-doing whereby China's rural
workforce gradually acquired an array of skills and competencies.
As a result, rural industrialization was accelerating well before
the 1978 climacteric. The growth of the 1980s and 1990s is
therefore likely to be a continuation of this process. Without
prior Maoist development of skills, the growth of the post-1978 era
would have been much slower, and perhaps would not have occurred at
all - as has been the case in countries such as India and Vietnam.
This is not to say that the Maoist legacy was without flaw. Many of
the rural industries created under Mao were geared towards meeting
defence-related objectives resulting in inefficiencies, and there
can be no question that post-1978 policy changes facilitated the
growth process. But without the Maoist inheritance, rural
industrialization across China would have been unsuccessful.
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