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.
