Kariobangi highlights a paper by Yasheng Wang that bolsters the cottage industry approach:
There are two prevailing explanations of what caused China's rate of economic growth to take off. The first view gives the pride of place to globalization. According to this view, Chinese growth started when Deng Xiaoping liberalized trade and foreign investments by setting up special economic zones in the in the coastal provinces. In this view, China's export-oriented manufacturing, largely foreign-funded, employed millions of rural migrants, boosted their income, and reduced poverty far and wide. The second perspective emphasizes the importance of internal reforms--especially in rural, interior regions--of the agricultural pricing system, land contracting, and the entry of rural businesses known as township and village enterprises.Huang argues that township and village enterprises were the key to China's take-off
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