Upgrading the Industrial Structure in China from Money Flow and Employment Viewpoint

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  • OKUDA Mai
    Graduate School for International Development and Cooperation, Hiroshima University
  • OCHI Yasuki
    Faculty of Social Sciences, Hiroshima University
  • ISHIDA Miki
    Graduate School for International Development and Cooperation, Hiroshima University
  • OKAMURA Makoto
    Faculty of Social Sciences, Hiroshima University

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Other Title
  • 資金移動と就業構造からみた中国の産業高度化
  • シキン イドウ ト シュウギョウ コウゾウ カラ ミタ チュウゴク ノ サンギョウ コウドカ

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Abstract

The purpose of this paper is to investigate the Chinese economic upgrades of her industrial structure by analyzing money flow and structural changes in employment. To expand the industrial sector, capital and labor forces are indispensable. The time span considered is from 1978 to 1998, when the market economy was introduced and rural enterprises were positively established in particular.<br> First of all, we examine the function of capital to explore whether the agricultural surplus contribute to the emerging of the industrial sector. Secondly, we determine whether the composition of labor force changed the industrial structure. We use the methodology of DPG analysis, which measures the deviation from proportional growth.<br> We conclude that the agricultural sector in China has been a surplus unit since 1989. The surplus generated in agriculture was invested in the industrial sector through financial institutions, by which the capital inflow turned to be an influential factor in industrial development. On the other hand, the size of labor force has increased by about 1.1 times every five years since 1978, when the transition towards a market economy began. From 1986 to 1990, the leading sector of growth shifted from the secondary industries to the tertiary industries. All in all, we demonstrate the upgrades of industrialization occurred from 1986 to 1990 by analyzing the capital and the labor force.<br><br>JFL Classification: O16, O53

Journal

  • Studies in Regional Science

    Studies in Regional Science 40 (1), 205-216, 2010

    JAPAN SECTION OF THE REGIONAL SCIENCE ASSOCIATION INTERNATIONAL

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