An empirical analysis of China's dualistic economic development: 1965-2009
We analyze China's rapid economic development in the context of the dualistic development theory. Over the period 1965–2009, we find that China's economic growth is mainly attributable to the development of the non-agricultural (industrial and service) sector, driven by rapid labor migrati...
| Main Authors: | , |
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| Format: | Article |
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Massachusetts Institute of Technology Press
2011
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| Online Access: | https://eprints.nottingham.ac.uk/47381/ |
| _version_ | 1848797531929051136 |
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| author | Ercolani, Marco G. Wei, Zheng |
| author_facet | Ercolani, Marco G. Wei, Zheng |
| author_sort | Ercolani, Marco G. |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | We analyze China's rapid economic development in the context of the dualistic development theory. Over the period 1965–2009, we find that China's economic growth is mainly attributable to the development of the non-agricultural (industrial and service) sector, driven by rapid labor migration and capital accumulation. We find that the sectoral reallocation of labor plays a significant role in promoting China's economic growth. Further, we find that the marginal productivity of agricultural labor stopped stagnating in 1978, which indicates that China entered quickly into phase two of economic development with the initiation of market reforms. Moreover, by 2009, the marginal productivity of labor has likely exceeded the institutional wage, as defined by the initially low average labor productivity, indicating that China may be now in the process of entering phase three of economic development. |
| first_indexed | 2025-11-14T20:05:22Z |
| format | Article |
| id | nottingham-47381 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T20:05:22Z |
| publishDate | 2011 |
| publisher | Massachusetts Institute of Technology Press |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-473812020-05-04T16:31:24Z https://eprints.nottingham.ac.uk/47381/ An empirical analysis of China's dualistic economic development: 1965-2009 Ercolani, Marco G. Wei, Zheng We analyze China's rapid economic development in the context of the dualistic development theory. Over the period 1965–2009, we find that China's economic growth is mainly attributable to the development of the non-agricultural (industrial and service) sector, driven by rapid labor migration and capital accumulation. We find that the sectoral reallocation of labor plays a significant role in promoting China's economic growth. Further, we find that the marginal productivity of agricultural labor stopped stagnating in 1978, which indicates that China entered quickly into phase two of economic development with the initiation of market reforms. Moreover, by 2009, the marginal productivity of labor has likely exceeded the institutional wage, as defined by the initially low average labor productivity, indicating that China may be now in the process of entering phase three of economic development. Massachusetts Institute of Technology Press 2011-10-30 Article PeerReviewed Ercolani, Marco G. and Wei, Zheng (2011) An empirical analysis of China's dualistic economic development: 1965-2009. Asian Economic Papers, 10 (3). pp. 1-29. ISSN 1535-3516 http://www.mitpressjournals.org/doi/abs/10.1162/ASEP_a_00108 doi:10.1162/ASEP_a_00108 doi:10.1162/ASEP_a_00108 |
| spellingShingle | Ercolani, Marco G. Wei, Zheng An empirical analysis of China's dualistic economic development: 1965-2009 |
| title | An empirical analysis of China's dualistic economic development: 1965-2009 |
| title_full | An empirical analysis of China's dualistic economic development: 1965-2009 |
| title_fullStr | An empirical analysis of China's dualistic economic development: 1965-2009 |
| title_full_unstemmed | An empirical analysis of China's dualistic economic development: 1965-2009 |
| title_short | An empirical analysis of China's dualistic economic development: 1965-2009 |
| title_sort | empirical analysis of china's dualistic economic development: 1965-2009 |
| url | https://eprints.nottingham.ac.uk/47381/ https://eprints.nottingham.ac.uk/47381/ https://eprints.nottingham.ac.uk/47381/ |