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Modern Economy 2024
The Realization of Lewis Turning Point Is Seen from the Labor Production Efficiency of Urban and Rural Sectors
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Abstract:
This paper aims to provide a new understanding of the current state of China’s primary and secondary industries and the urban-rural dual structure. The study uses GDP data, employment data, and urbanization rates from 31 provinces between 1990 and 2022, and employs a threshold effect model for statistical analysis. The results indicate that urbanization, once reaching a certain threshold, positively affects labor productivity in the primary industry, shifting from negative influence. Meanwhile, although the secondary industry maintains a positive influence, a significant decline is observed at higher urbanization rates. The study concludes that China crossed the first Lewis turning point around 2017.
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