Openness and urbanization: The case of the People's Republic of China

Arbeitspapier

Urbanization usually occurs with structural transformation driven by a "push" from agricultural productivity growth and a "pull" from industrial productivity growth, and usually the former exceeds the latter. This paper presents a simple model to illustrate how the open policy in the People's Republic of China (PRC) since 1979 reversed the pattern such that the "pull" effect dominated the "push" effect during the PRC's structural transformation and urbanization. This model helps explain why the PRC, whose industrial productivity growth exceeds its agricultural productivity growth, has experienced a standard pattern of structural transformation. The paper also demonstrates how a developing country's business services intensity increases with its urbanization.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ADBI Working Paper ; No. 561

Classification and Topics

• Classification: Wirtschaft ; Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices ; Industrialization; Manufacturing and Service Industries; Choice of Technology ; Economic Growth and Aggregate Productivity: General
• Subject: urbanization ; structural transformation ; industrial productivity growth ; People's Republic of China

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lo, Chu-Ping
• Event: Veröffentlichung
• (who): Asian Development Bank Institute (ADBI)
• (where): Tokyo
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/163096
• Last update: 10.03.2025, 11:42 AM CET