Agricultural and nonagricultural growth and intercounty inequality in China, 1985-1991

Rural industrialization is promoted in many developing countries as an alternative strategy to increase rural income and create employment. In countries with insufficient urbanization and industralization, rural industry is effective in alleviating rural unemployment and eliminating poverty. China's rural industry has seen explosive growth for the past two decades, transforming the social and economic landscape of the countryside. Prior to the emergence of rural industries, agriculture was the primary source of rural income and its uneven development the main source of regional disparities. When activities other than crop production begin to play an increasingly important role in the rural economy, they also become a new source of regional disparities. This article examines the impact of the burgeoning nonagricultural sector on intercounty disparities in China between 1985 and 1991.