Author: Yafang Chen
AIT Library Call Number: AIT Thesis no. HS-93-25
Year: 1993
Academic Program: Human Settlement (HS)
Type: Thesis (M.Sc.) – Asian Institute of Technology
Examination Committee: A.T.M. Nurul Amin (Chairperson); Karl E. Weber, B.W.E. Wickramanayake, Barbara Igel, (Examination Committee Members)
Abstract: After two decades of researches and studies, the role of the i n forma l sector in the developme nt process is now widely recognized. However, there is still t he dispute about t h e capability of this sector to grow evolutionarily. Previous researches are l im ited wi th respect to t he nature a nd mech anism of informa l sector growth . Especially literatures are almost non existent regarding the informal sector and its growth in Ch ina. This study aimed to analyze the internal and external mechanism and to assess the f ut ure prospects of the informal sector growth. Data of this study were collected t h rough a sampling survey in Guangzhou City, the largest metropol is in southern China. Th e preva l e n ce of remarkab l e i ntern al dynamism i s found in t h e informal sector in terms of entrepren eursh ip and innovation . The compiled and analyzed empirical data strongly suggest a positive relationship between the expansion of informal sector enterprise and the extent of entrepreneurship and innovation. Externally, the relationship between the formal and informal sector is found to be complementary in nature. With the prevalence of t h is relationship, t he more t he i n forma l e n terprise is i ntegrated with the rest of the economy, t he more it expands in b u siness. It is also found that the market competition for the informal enterprises is strong but not excessive and the general socia l and policy environment is favourable. The future prospect of the informal sector growth is also found optimistic on t h e basis of anticipation of the informal enterprise operators. Th e encouraging finding is that the informal sector i n Guangzhou displ ays an evol utionary pattern of growth as observed i n t heir ability to accumu late capital. In order to maximize social gains from the operation of this sector in t he urban economy, the study proposes several policy recommendations to incorporate the informal sector in the urban economic deve l opment and physical planning. This would
Scholarship Donor(s): State Education Comm ission of People ‘ s Republic of China
Note: A thesis submitted in partial fulfillment of the requirement for the degree of Master of Science
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