SELF‐EMPLOYMENT WITH CHINESE CHARACTERISTICS: THE FORGOTTEN ENGINE OF RURAL CHINA'S GROWTH

Jian Zhang · Linxiu Zhang · Scott Rozelle · Steve Boucher

86 citations0/0 files storedContemporary Economic Policy

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China's Socioeconomic Reforms and Governance Economic and Industrial Development Firm Innovation and Growth

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.(JELJ23, D21, O12)

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1998What Makes an Entrepreneur?2017The theory of economic development – An inquiry into profits, capital, credit, interest, and the business cycle 1989Some Empirical Aspects of Entrepreneurship 2000Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self‐Employment 1990Some Empirical Aspects of Entrepreneurship 1998The dynamics of micro and small enterprises in developing countries 1999Rural China Takes Off 2006Do Entry Costs Provide an Empirical Basis for Poverty Traps? Evidence from Mexican Microenterprises

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2013China's Labor Transition and the Future of China's Rural Wages and Employment 2012Legal Development, Financial Repression, and Entrepreneurship in a Marketizing Economy 2015The enterprise reforms and entrepreneurial development in China

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