Explaining China's rural industrialisatin: The roles of social capital, human capital and economic fundamentals
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AbstractIn this article we analyse a set of survey data from 153 Chinese villages to compare the effects of the social capital, human capital, and the classical economic factors of capital, labour and technical know-how on China's rural industrial development. The results reported below represent our first attempt to explain the rapid rural industrialisation, which has been the engine behind China's recent economic miracle. The objective of this article is to examine the inter-village variation in levels of rural industrialisation and to empirically test the social explanation of this variation. As will be discussed in detail in the next section, the social explanation argues that the Chinese family pattern is a contributing factor to China's recent economic success. Since the effect of this family pattern is the strongest in the Chinese village, its impact on rural industrialisation provides a good case to test the theory. Using the data of a village survey conducted in 1991, we ask: (a) are family networks positively or negatively correlated to the local variations in rural industrialisation? and (b) what is the relative explanatory power of social, human and financial resources upon a village's success at industrialisation? Before we state our hypotheses we shall describe the social explanation as contrasted to other more conventional theories on China's economic development.
All Author(s) ListLau C.C., Peng Y.
Journal nameChina Report
Volume Number36
Issue Number3
PublisherSage Publications India Pvt Ltd.
Place of PublicationIndia
Pages355 - 369
LanguagesEnglish-United Kingdom

Last updated on 2020-03-09 at 02:06