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Self‐Employment With Chinese Characteristics: The Forgotten Engine Of Rural China'S Growth

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  • JIAN ZHANG
  • LINXIU ZHANG
  • SCOTT ROZELLE
  • STEVE BOUCHER

Abstract

This article sketches a picture of the self‐employment sector in rural China and examines the nature of its emergence. Using a randomly selected, nationally representative household‐level data set that contains detailed information on household self‐employment activities, this article provides evidence that although the self‐employed enterprises are small, they have grown fast, operate as relatively complex businesses, and perform well in a financially healthy way. These results, taken together with the pattern of the emergence of self‐employed enterprises across China's regions, reveal that the expansion of self‐employment is not symptomatic of a failing economy; instead it is a component of the dynamic development process that characterizes rural China during its reform period. (JEL J23, D21, O12)

Suggested Citation

  • Jian Zhang & Linxiu Zhang & Scott Rozelle & Steve Boucher, 2006. "Self‐Employment With Chinese Characteristics: The Forgotten Engine Of Rural China'S Growth," Contemporary Economic Policy, Western Economic Association International, vol. 24(3), pages 446-458, July.
    • Handle: RePEc:bla:coecpo:v:24:y:2006:i:3:p:446-458
    DOI: 10.1093/cep/byj034
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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