The Labor Force Migration And Its Reality Under The Dual Economy And Industrialization In China

This thesis examined the major role of rural area on the process of an economic growth after the economic reformation open in China. As a matter of fact that the economic reform in China has long being emerged in rural area so that it plays an import ant role in Chinese economic growth. But, it is relatively under-estimated than its real sit uation since the economic reform and urban area weight expanded. So, the main purpose of this research is to examine the role of rural and urban economies in China can be classified as a Nurke model or Lewis model which is a basic economic growth model. Also this thesis analyzed the migration of latent unemployed labor force from rural to urban area and its effects on China’s economy by using the Unlimited Labor Supply model. It is clear that a mass amount of invisible unemployed population have flown into cities since the economic reform was enforced in China.By using the Granger causal test, which is used for figuring out a correlation between expenditure in rural area and urban area, this thesis will figure out if rural areas contributed to China’s economy by boosting up labor productivity in urban area on account of labor force migration or by increasing in income in rural area itself. The result showed an increase in expenditure in urban area leaded rise in expenditure in rural area so that China’s economic growth had been through the same way with Lewis model growth process.From the research, China’s economy has reached to the first Lewisian turning point in 1997 and waged increased at this moment which goes the same with The Lewis model. We need to focus on the fact there were a lot of changes and improvements on policies about rural exodus workers(农民工)household registration system(户口制度)From the research, China’s economy has not reached to the second Lewisian turning point yet which means rural area economies are still in low efficiency and productivity with low level competitiveness. That means the central Chinese government needs to focus on and become aware this phenomenon for up grading productivity and quality. Thus, this thesis includes some suggestions which would be helpful to become aware of this phenomenon as well as it includes an integrated view of the process of industrialization under the circumstance of unlimited supplies of labor force in China, reality of labor market, problems of household registration system(户口制度)at the same time it considers a mass amount labor for migration.