The Great Exodus

Purpose The purpose of this paper is to review the process of rural labor reallocation and unfolds its growth effect through sufficiently supplying human resources, preventing diminishing return to capital, and increasing labor productivity. Design/methodology/approach The author surveys literature...

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Veröffentlicht in:China agricultural economic review Jg. 10; H. 1; S. 3 - 15
1. Verfasser: Cai, Fang
Format: Journal Article
Sprache:Englisch
Japanisch
Veröffentlicht: Bingley Emerald Publishing Limited 05.02.2018
Emerald Group Publishing Limited
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ISSN:1756-137X, 1756-1388
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Abstract Purpose The purpose of this paper is to review the process of rural labor reallocation and unfolds its growth effect through sufficiently supplying human resources, preventing diminishing return to capital, and increasing labor productivity. Design/methodology/approach The author surveys literature and statistics related to the subject to comprehensively picture the 40-year course of the shift and reallocation of agricultural surplus labor. Findings In the past 40 years, reforms in relevant areas have eliminated institutional barriers deterring labor mobility and allowed agricultural laborers to exit from low-productivity farming employment, migrate beyond rural-urban boundary and across regions, sectors, and ownerships, and enter higher productivity employment in non-agricultural sectors. As a result, resources allocative efficiency has been substantially improved, contributing a significant part to labor productivity growth and thus economic growth of the Chinese economy as a whole. Social implications To sustain this source of economic growth as far as China completes its transition from upper-middle income status to high-income status, deepening reforms is urgently needed. The author provides policy suggestions for further reform. Originality/value This paper enhances people’s understanding of the Chinese economic reform and its nature of efficiency and inclusion.
AbstractList PurposeThe purpose of this paper is to review the process of rural labor reallocation and unfolds its growth effect through sufficiently supplying human resources, preventing diminishing return to capital, and increasing labor productivity.Design/methodology/approachThe author surveys literature and statistics related to the subject to comprehensively picture the 40-year course of the shift and reallocation of agricultural surplus labor.FindingsIn the past 40 years, reforms in relevant areas have eliminated institutional barriers deterring labor mobility and allowed agricultural laborers to exit from low-productivity farming employment, migrate beyond rural-urban boundary and across regions, sectors, and ownerships, and enter higher productivity employment in non-agricultural sectors. As a result, resources allocative efficiency has been substantially improved, contributing a significant part to labor productivity growth and thus economic growth of the Chinese economy as a whole.Social implicationsTo sustain this source of economic growth as far as China completes its transition from upper-middle income status to high-income status, deepening reforms is urgently needed. The author provides policy suggestions for further reform.Originality/valueThis paper enhances people’s understanding of the Chinese economic reform and its nature of efficiency and inclusion.
Purpose The purpose of this paper is to review the process of rural labor reallocation and unfolds its growth effect through sufficiently supplying human resources, preventing diminishing return to capital, and increasing labor productivity. Design/methodology/approach The author surveys literature and statistics related to the subject to comprehensively picture the 40-year course of the shift and reallocation of agricultural surplus labor. Findings In the past 40 years, reforms in relevant areas have eliminated institutional barriers deterring labor mobility and allowed agricultural laborers to exit from low-productivity farming employment, migrate beyond rural-urban boundary and across regions, sectors, and ownerships, and enter higher productivity employment in non-agricultural sectors. As a result, resources allocative efficiency has been substantially improved, contributing a significant part to labor productivity growth and thus economic growth of the Chinese economy as a whole. Social implications To sustain this source of economic growth as far as China completes its transition from upper-middle income status to high-income status, deepening reforms is urgently needed. The author provides policy suggestions for further reform. Originality/value This paper enhances people’s understanding of the Chinese economic reform and its nature of efficiency and inclusion.
Author Cai, Fang
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Hukou system reform
Resources reallocation
Chinese economy
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Snippet Purpose The purpose of this paper is to review the process of rural labor reallocation and unfolds its growth effect through sufficiently supplying human...
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SubjectTerms Agricultural economics
Agricultural industry
Agricultural production
Agriculture
Allocative efficiency
Capital
Economic conditions
Economic development
Economic growth
Economic models
Economic reform
Economics
Employment
Farmers
Farming
Farmworkers
GDP
Grain
Gross Domestic Product
Households
Human resources
Income
Labor
Labor economics
Labor force participation
Labor migration
Labor productivity
Labor supply
Manual workers
Migration
Mobility
Occupational mobility
Poverty
Productivity
Rationing
Reforms
Rural areas
Rural communities
Shortages
Statistics
Urban areas
Title The Great Exodus
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