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From Privatization to Deindustrialization: Implications of Chinese Rural Industry and the Ownership Debate Revisited

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  • Zhan, Shaohua

Abstract

This paper examines the evolution of Chinese rural industry since the rural reform in the late 1970s and revisits the debate on the role of ownership. Based on a case study of W county in southern Jiangsu province as well as drawing on national data, the author shows that the community-based market dynamic had been a key factor in the expansion of rural enterprises and that its weakening in recent years has led to the closing of village enterprises and deindustrialization of the countryside. Large-scale land expropriation, sponsored by local government, is the principal factor responsible for the change.

Suggested Citation

  • Zhan, Shaohua, 2015. "From Privatization to Deindustrialization: Implications of Chinese Rural Industry and the Ownership Debate Revisited," World Development, Elsevier, vol. 74(C), pages 108-122.
    • Handle: RePEc:eee:wdevel:v:74:y:2015:i:c:p:108-122
    DOI: 10.1016/j.worlddev.2015.04.018
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    Cited by:

    1. Dongshui Xie & Caiquan Bai & Huimin Wang & Qihang Xue, 2022. "The Land System and the Rise and Fall of China’s Rural Industrialization: Based on the Perspective of Institutional Change of Rural Collective Construction Land," Land, MDPI, vol. 11(7), pages 1-22, June.
    2. Zheng, Lucy & Batuo, Michael Enowbi & Shepherd, David, 2017. "The Impact of Regional and Institutional Factors on Labor Productive Performance—Evidence from the Township and Village Enterprise Sector in China," World Development, Elsevier, vol. 96(C), pages 591-598.

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