Intrinsic Power,Mechanism And Approach:Research Of China’s Dual Economic Transformation

Dual economic structure refers to an economic structure in which the modern urban sector co-exists with the traditional agricultural sector. In the course of economic growth and structural evolution, developing countries must go through this stage, which reflects the "inherent" deficiencies of developing countries in the structure growth. The main task that developing countries must face in the stage of industrialization is to transform the backward national economy structure, that is, the transformation of the heterogeneous dual economic structure to homogeneous economic structure. China, a developing country, is basically characterized of the dual economic structure in the national economy. After the founding of the PRC, Chinese government had implemented an economic strategy of giving priority to the development of heavy industry, which resulted in a powerful dual economic structure. After the Third Plenary Session of the11th Central Committee of the CPC, a comprehensive reform aiming to a market economic system from rural to urban areas was performed in China, therefore, the strength of dual economic structure had been greatly weakened. However, compared with developed countries, China’s dual economic structure is still obvious; and compared with developing countries at the same level, transformation speed of the two economic structures is slow. The lag of binary transformation has brought about many key problems in the economic life:the dual constraints of the resources environment and market demand in the economic development, the dual employment pressure in urban and rural areas in the course of allocation and utilization of labor resources, the imbalance of the speed and quality in economic growth and so on. Therefore, promotion of Dual Economic Structure transformation is not only of significance to solve the "three rural issues" that have long hindered China’s economic development, but also to ease the pressure of the lack of effective demand and employment in current economic operation. Based on this, by the way of using Marxist economics research methods and the endogenous institution analysis, this dissertation discussed and analyzed the motivation and approach of China’s dual economic transformation.The dual economy is mainly characterized of a binary contrast. Economically understood, the binary contrast represents a kind of gap, but the traditional dual economic theory only emphasized the opposition of the sector gap between the modern urban sector and rural traditional agricultural sector, but not multi-dimensionally analyzed the binary contrast, let alone explained the concrete manifestation of the gap combined with the reality of developing countries. In the case of China’s situation, the binary contrast can be summed up in three dimensions and manifestations:First, a confrontation between the traditional agricultural sector with modern non-farm sector, as demonstrated by the productivity gap between the two sectors; Second, a confrontation between agricultural labor and non-agricultural labor force, which manifests itself in the gap between the income of urban and rural residents, in China, can be measured by urban-rural income ratio and the difference between Gini coefficient; Third, a confrontation between the urban and rural areas, this opposition was manifested as a geographical gap in development level between urban and rural areas, not only in economic terms, but also in the political, cultural and other aspects, the development level in rural areas lag behind the city. From the Marxist philosophy, the binary contrast is on behalf of a set of contradictions that exist in binary economy and promote the transformation of the dual economy to single economy. This is the internal driving force of transformation from the dual economic to single economy. Driven by different force, the approach of binary transformation was also diverse. Research ideas and research framework was arranged in this dissertation by using the dual economic theory of development economics and Marxist contradiction analysis methods and three angles of analysis were performed as fellow:The first perspective is the transfer of rural labor and the dual structure transformation.The second perspective is traditional agricultural modernization and dual structure transformation.The third perspective is the urban-rural integration development and dual structure transformation. The above three perspectives analysis shows that the internal contradictions that promote the transformation of dual economy to single economy is multi-dimensional, thus, dual economic transformation approach is doomed multidimensional. In order to realize China’s dual economic structure transformation, it is necessary to promote diverse binary transformation approach. That is, the traditional thinking of one-sided emphasis on certain development strategy should be sublated, and a variety of ways, many ways should be applied to achieve the dual economic structure transformation. In brief, rural labor migration from countries to cities, the modernization of traditional agriculture and the integration of urban and rural urbanization were effectively combined.The innovation of this paper lies in the following three aspects:First, the novelty of research perspective. The research focused on the word "transformation" and revealed the dynamics and routes of transformation from the endogenous institution analysis; Second, a new insight that the endogenous motivation of dual economic transformation is the internal contradictions of the dual economies was put forward, there are three intrinsic motivation of dual economic structure transformation in China:the non-farm transfer of rural labor force due to urban-rural income gap, the intrinsic motivation of Chinese traditional agriculture going out of the overcrowding plight--innovation of agricultural business model and organizational model and the intrinsic motivation of urbanization promoted by integration of urban and rural areas, construction of small towns and urban economic agglomeration and diffusion effects; Third, policy conclusions innovation, a diversified road of dual economic structure transformation was advocated.