Abstract
One of the most striking features of China’s economic reform is the increasing polarization between the prosperous eastern coastal provinces and the still relatively backward north and western parts of the country. Regional income inequality has been widening considerably under economic reforms (Yao, 1997). This has been accompanied by dramatic changes in the employment and investment structures at both national and regional level. First, there is an increasing surplus of labour released from agriculture owing to increased labour productivity and shortage of land. Second, an increasing number of workers and staff employed by state-owned industries have become unemployed or under-employed. Third, and most impressively, the country’s investment emphasis has been shifting or diversifying away from agriculture and manufacturing to the service sector, and from heavy and defence-based industries to light industries (Zhao, 1996). Indeed, economic reform has led to significant changes in employment and investments across regions. Such changes have contributed to substantial regional disparities in economic growth and incomes as different regions now have different industrial structures and development policies.
I am indebted to Shujie Yao and Sarah Cook for their comments, but remain solely responsible for any shortcomings.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
Bibliography
Arcelus, F. J. (1984) ‘An Extension of Shift-share Analysis’, Growth and Change, 15, pp. 3–8.
Armstrong H. and J. Taylor (1993) Regional Economics and Policy, 2nd edn, (London: Harvester Wheatheaf).
Berzeg, K. (1978) ‘The Empirical Content of Shift-share Analysis’, Journal of Regional Science, 18, pp. 463–9.
Casler, S. D. (1989) ‘A Theoretical Context for Shift and Share Analysis’, Regional Studies, 23, pp. 43–8.
Dunn Jr, E. S. (1960) ‘A Statistical and Analytical Technique for Regional Analysis’, Papers of the Regional Science Association, 6, pp. 97–112.
Esteban-Marquilas, J. M. (1972) ‘A Reinterpretation of Shift-share Analysis’, Regional and Urban Economics, 2(3), pp. 246–55.
Fothergill, S. and G. Gudgin (1979) ‘In Defence of Shift-share Analysis’, Regional and Urban Economics, 12, pp. 249–255.
Griffin, K. and R. Zhao (1993) The Distribution of Income in China (New York: St. Martin’s Press).
Healey, M. and D. Clark (1984) ‘Industrial Decline and Government Response in the West Midlands: The Case of Coventry’, Regional Studies, 18, pp. 303–18.
Hoppes, R. B. (1994) ‘Rejoinder: Industry-level Shift-share Analysis’, Economic Development Quarterly, 8, 214–17.
Hussain, A., P. Lanjouw and N. Stern (1994) ‘Income Inequalities in China: Evidence from Household Survey Data’, World Development, 22(12), pp. 77–96.
Ishikawa, Y. (1992) ‘The 1970s’ Migration Turnaround in Japan Revisited: A Shift-share Approach’, Papers in Regional Science: The Journal of RSAI, 71(2), pp. 153–73.
Knight, J. and L. Song (1993) ‘The Spatial Contribution to Income Inequality in Rural China’, Cambridge Journal of Economics, 103, pp. 1221–27.
Kurre, J. A. and B. R. Weller (1989) ‘Forecasting the Local Economy, Using Time-series and Shift-share Techniques’, Environment and Planning A, 21, pp. 753–70.
Knudson, D. and R. Barff (1991) ‘Shift-share Analysis as a Linear Model’, Environment and Planning, 23, pp. 421–31.
Liu, A. and D. Clark (1995) ‘Industrial Reorganization of a Defence Based Regional Economy after the Cold War: The case of Portsmouth in Britain’, Discussion Paper, 62, Department of Economics, University of Portsmouth.
Moore, B. C. and J. Rhodes (1973) ‘Evaluating the Effects of British Regional Economic Policy’, Economic Journal, 83, pp. 87–110.
Randall, J. N. (1973) ‘Shift-share Analysis as a Guide to the Employment Performance of West Central Scotland’, Scottish Journal of Political Economy, 20, pp. 1–26.
Selting, A. C. and S. Loveridge (1994) ‘Testing Dynamic Shift-share’, Regional Science Perspectives, 24, pp. 23–41.
State Statistical Bureau (SSB) of PRC (1985–95) China Statistical Yearbook (Beijing: Statistical Publishing House).
Stevens, B. H. and C. L. Moore (1980) ‘A Critical Review of the Literature on Shift-share as a Forecasting technique’, Journal of Regional Science, 20,4, pp. 419–37.
Stillwell, F. J. B. (1970) ‘Further Thoughts on the Shift and Share Approach’, Urban Studies, 4, pp. 451–8.
Theil, H. and R. Gosh (1980) ‘A Comparison of Shift-share and the RAS Adjustment’, Regional Science and Urban Economics, 10, pp. 175–80.
Yao, S. (1997) ‘Industrialization and Spatial Income Inequality in Rural China: 1986–92’, Economics of Transition, 5(1), pp. 97–112.
Zhao, X. (1996) ‘Spatial Disparities and Economic Development in China, 1953–92: A Comparative Study,’ Development and Change, 27, pp. 131–63.
Editor information
Editors and Affiliations
Copyright information
© 2000 Palgrave Macmillan, a division of Macmillan Publishers Limited
About this chapter
Cite this chapter
Liu, A. (2000). Structural Changes in Employment and Investment in China: 1985–94. In: Cook, S., Yao, S., Zhuang, J. (eds) The Chinese Economy under Transition. Studies on the Chinese Economy. Palgrave Macmillan, London. https://doi.org/10.1057/9780230288164_14
Download citation
DOI: https://doi.org/10.1057/9780230288164_14
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-27852-7
Online ISBN: 978-0-230-28816-4
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)