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Research Article

The Role of Rural Sector for China`s Economic Growth

Jun Hyeon Cho1 · Ji Yong Jang1 · Do Young Jung1

1 서강대학교 동아연구소

Published: January 2010 · Vol. 29 No. 1 · pp. 121-149

DOI: https://doi.org/10.33334/sieas.2010..58.121

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Abstract

The purpose of this research is to examine the role of rural and urban economies in China can be classified as a Nurkse model or a Lewis model. According to the Granger test, income increasing in the rural sector has not preceded at the rising in urban sector in China. But, conversely, income increasing in the urban sector has preceded at the rising in urban sector. This result is the opposite of the experience of Korea. This means that the rural economy`s marginal productivity of labour has yet remained below the level of urban economy in China. So it demands more progressive policies for rising productivity in the rural sector.
Keywords: Chinese economyrural economyunlimited Labour supplyNurkse modelLewis modelGranger test