Overseas Chinese Investments in China – Patterns of Growth, Diversification and Finance: The Case of Charoen Pokphand

Abstract

The accelerated economic growth of Asia over the last three decades is well documented. While Britain and many other European countries experienced an average rise of real productivity by 2–3 per cent every year from 1973–1992, Asian growth frequently soared over 8 per cent, particularly after 1978. China in particular saw a remarkable increase in the average annual growth rate of GDP from 7 per cent in 1976 to a constant 9 per cent in the 1978 to 1988 period. In 1992 it rose again to 13 per cent, subsequently fluctuating between 8 per cent and 9 per cent. The contribution of agriculture to GDP increased from 28 per cent 1978 to 34 per cent in 1982. Thereafter a contraction in agriculture's share – from 34 per cent back to 24 per cent – reflected a major expansion in industry and services. There was an increase in industrial employment from 18 per cent to 21 per cent, and in that of services from 14 per cent to 18 per cent.