More than a third of national output of the Chinese economy now
comes from enterprises in the rural areas outside the plan. This
book explains how that sector became so big in China and what it
means for economic reform and structural change. The book contains
precise measures of the size of the rural enterprise sector and the
extent to which it has contributed to growth in China. The sources
of both labour and capital used are documented, and their
contributions to the growth are estimated. The implications of the
growth of these enterprises are explored and the new issues which
the growth of the sector has created so far are identified. Special
attention is paid to problems associated with the nature of rural
enterprise ownership. The analysis stresses the special conditions
in China and also highlights some lessons for the process of reform
in other economies.
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