Urbanisation, Agriculture and Industrialisation in China, 1952-91

Urbanisation rates in China have been low compared to other countries at similar stages of development. We examine recent trends in China's urbanisation process in the context of a disequilibrium supply and demand model for urban residents with relative urban food consumption as a proxy for wages. This model takes into consideration the roles of the agricultural and industrial sectors in the context of a non-market economy where institutional arrangements and policy regimes play important roles in determining urbanisation levels. We find persistent periods of disequilibrium prior to the introduction of reforms in 1978. Throughout the post-reform era there has been a markedly improved balance between urban population levels, urban food consumption, and industrial and agricultural production levels.